Late Payment Fee

richyje123

Today, on my door mat landed a County Court Claim form from a Vets Practice. We used there services just over a year ago.

Yes, before I continue I agree this should have been paid for in the first instance and I have buried my head in the sand for some time.

However, as stated on previous reminder invoice (2nd invoice) they have charged a late payment fee which was added to the original invoice just over a month after the 1st original invoice was raised.

My question is whether a small business is able to add a late payment fee to a service they were providing (and if so what these charges could be). From a general search on the web it appears if this is a commercial debt (ie business to business) this may be possible, however not sure as to my understanding this is not a commercial debt.

They have also added interest at 8% per annum.

I have no objection to paying my debts, but interested in the legal side of whether it is allowed to charge a late payment fee. I am not aware of any terms and conditions I agreed to that allowed for such a fee.

Thanks for your help...

Richard

GarthThomas

If you are happy to pay your debts, and accept that they've had to chase you to get to this point, then why are you interested in the legal side?

Academic interest, or you want to leave them not being paid for the chasing that you made them do?

lewishardwick

If you have no objection to paying your debts, why didn't you pay when you head the opportunity?

Have you checked the T&Cs of payment?

Pretty much every service I pay for has a late payment fee.

EssexHebridean

The 8% interest is the statutory level I think you'll find.

You acknowledge you've been ignoring the request for payment - personally I'd say suck it up and take it forwards as a lesson...

Helvetica_Van_Buren

richyje123 wrote: »

I have no objection to paying my debts,

Yet here we are.

Spatton

Yes they can add a late payment fee. It could also be thought of as an admin charge for all the hassle of chasing you (time, resources, the distaste of having to do it - I've never met anyone who likes having to do, especially not when they've already done the work and deserve to be paid), plus an incentive for you not to do it again.


I assume you have Googled the "Late Payment of Commercial Debts (Interest) Act 1998", to which your interpretation is partly right and partly dubious from your explanation, as you can be charged interest on top of the late payment fee, but at a different rate from B2B transactions.


If you really want the hassle of going to court to argue over interest, good luck, but I doubt proportionality will be on your side being as you acknowledge you owe the money. You could well end up with a costs order against you, which could get very expensive indeed.

richyje123

The late payment fee they have charged is £65, so far above the £40 the Late Payment of Commercial Debts (Interest) Act 1998 states for a debt this size. Just to clarify this is not a commercial debt, so this does not even apply.

I am already being penalised by the 8% interest they have added and I will pay.

The law is the law and I am fine to pay what I owe (with interest) but I am not happy to pay late payment charges which they have no legal rights to charge.

I have no intention to use this vet practice in the future, so dont mind negotiating on the payment to clear this up.

GarthThomas

Why don't you want to just pay? It seems a fair enough charge for making them chase you for the money. They have a business to run, and you've had them over for no good reason.

They can (and hopefully will) let it be known to other surgeries who the problem customers are, so you may find that no-one will want your custom in the future.

StopIt

richyje123 wrote: »

The late payment fee they have charged is £65, so far above the £40 the Late Payment of Commercial Debts (Interest) Act 1998 states for a debt this size. Just to clarify this is not a commercial debt, so this does not even apply.

I am already being penalised by the 8% interest they have added and I will pay.

The law is the law and I am fine to pay what I owe (with interest) but I am not happy to pay late payment charges which they have no legal rights to charge.

I have no intention to use this vet practice in the future, so dont mind negotiating on the payment to clear this up.

You're continuing to quote an act that doesn't apply.


If they're charging an illegal charge, get advice from your CAB for redress. However. I think you're on a hiding to nothing. As you've been served court papers, your time to negotiate charges has long passed.

sourcrates

Make the vets an offer to settle out of court, minus the fee, and they may cancel the claim.

redux

I don't know, but I imagine that the court may also charge a process fee, and perhaps the applicant expects this to be added to the debt.

The OP hasn't said anything about either disputing the original bill, or about having had difficulty in affording to pay.