Late Payers?

[skwronk]

Having a leetle problem at the moment with a client paying late - am planning to hit them with the statutory interest charge but have been trying to find - and yes, I have researched it on the net (no joy) - a legal definition of 'paid'.

My contract says that invoices will be 'paid within 14 days of invoice presentation'... so am I deemed to have been paid when the cheque clears, the cheque arrives through my letterbox, or when the cheque is written?

Thanx in advance,

[mailmannz]

if you have opted out you are rooted...you can thank the PCG for that little gem.

Mailman

[skwronk]

Clarification....

As stated (but maybe not clearly enough!) in the original post, this is a direct contract with a client, not an agency. Opting in or out doesn't have any relevance... it's a straightforward business contract as far as I can see. Payment terms clearly stated and all that.

BTW (perhaps surprisingly) my accountant didn't know the answer but guessed that the postmark on the envelope the cheque arrives in may be the significant date for calculating the late payment fee

[tim123]

Re: Clarification....

The date on the envelope does seem to be a good solution. Unless you are talking hundreds of thousands a couple of days difference isn't going to make a difference and it can't reasonably be the date that it clears as that is outside the control of the payer (you could leave it your drawer for two weeks just to divy up some more interest).

As to the opting out bit, you are right it makes no difference. Mailman is talking out of his arse - as I have told him before, but he isn't interested in learning about Contract law, he has some other agenda (whatever it may be).

tim

[mailmannz]

Re: Clarification....

Haha...you have no idea how right I am :rollin

Mailman

[CAB]

Date of posting should be sufficient.

However, does your contract expressly exclude the clients standard terms of trading from the contract? and have you seen them?

It may be that the client has a different payment cycle, and is confident that his T's and C's override yours.

Also, be careful since you may be biting off the hand that feeds you!!

[sb5spa]

Interest

Your right to charge interest is either contractual or under statute. You say that you are intending to charge statutory interest and I assume therefore that you do not have a contract which entitles you to claim interest - if not you should certainly think about having some terms and conditions drawn up to be included on any quote that you send out for your client to confirm acceptance of when placing an order. As you are claiming statutory interest the question of T&Cs is academic and no terms in your clients own contractual documentation can absolve them of their liability to pay interest.

As far as the date of payment is concerned this will be the date that you actually receive payment of your fees. I would say that it will be the date you physically receive a cheque and you could probably allow a further 3 days for the funds to clear through the banking system. Unless the amount due is large a few days is not really going to make a great difference.

Suggest you visit www.payontime.co.uk for information about interest and how it can be charged.

Steve Bellamy
Qdos Consulting Ltd