The Late Payment of Commercial Debts Regulations 2013
United Kingdom: Late Payments: EU Directive Implemented
08 April 2013
Article by Brian Cain
5 New Street Square
London EC4A 3TW
In relation to contracts concluded after 16 March 2013 the rights conferred
on creditors by the Late Payments of Commercial Debts (Interest) Act 1998
have been given a boost by The Late Payment of Commercial Debts Regulations
2013 which came into force on that date. The new regulations implement
Directive 2011/7/EU of the European Parliament and of the Council of 16
February 2011 on combating late payment in commercial transactions. Broadly
speaking the Regulations specify payment periods for contracts for goods or
services, by providing that interest on outstanding payments starts to run
after certain time periods depending upon when the goods or services are
delivered or the relevant invoices received. In the case of contracts with
public authorities interest will begin to run after 30 days and for
contracts with other entities the relevant period is 60 days. Knowing the
detail of these new regulations will help any suppliers who have not
expressly provided for default interest in their terms and conditions.
The content of this article is intended to provide a general guide to the
Specialist advice should be sought about your specific circumstances.
Specific Questions relating to this article should be addressed directly to
Posted by: Ian (D. Withers)
Past Chairman & GC Member
Come and join us at one of the following events this Autumn/Winter. Our Managing Director, Kerry Bland will be on hand to discuss how we can help you recover the money you are owed. If you wish to come to any of the following events, please contact us at firstname.lastname@example.org or the specified venue directly.
6th – 7th November, Conference at Belton Woods, Grantham.
13th November, High Peak Network at the Palace Hotel, Buxton. Evening event.
14th November, Sheffield Curry Club at Aagrah Restaurant Sheffield. Lunchtime event.
15th November, Business Network South Lakes at Castle Green Hotel, Kendal. Lunchtime event.
19th, 20th, 21st November, Business Exhibition in Edinburgh. (Venue to be confirmed.)
27th November, Institute of Directors at Media City, Salford Quays. Starts 4.30pm.
28th November, Manchester Curry Club at the Rajdoot Restaurant, Manchester.
7th December, Institute of Directors at Albert Square Chop House, Manchester. Lunchtime event.
12th December, Manchester Curry Club at the Rajdoot Restaurant, Manchester.
13th December, Business Network South Lakes at Lancaster House Hotel, Lancaster.
17th December, Macclesfield Chamber of Commerce Network at Adlington Hall. Lunchtime event.
8th January 2013 – 10th January 2013, Conference at Devere Habern House Hotel, Milton Keynes.
Hope to see you there!
Jack Russell Debt Collection are now online via our following social media channels. Connect with us via social media and stay in touch with latest company news, developments, offers and industry tips exclusive to some of our social media channels.
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Meet the team
Jack Russell Debt Collection’s, one of the UK’s most prominent debt collection agencies, show their support for good causes. Managing Director, Kerry Bland, has recently completed the Macclesfield Half Marathon to raise money and awareness for the David Lewis Centre based in Cheshire. This builds on the sponsorship of the Children Today Charity during the Great North Run.
Connect with Jack Russell Debt Collection via Linked In or Facebook where they hope by building their social following they will also be able to attract a community to which they can help raise awareness for good causes, and keep people up to date on how to get involved amongst keeping up to date with the latest advice, news & events from Jack Russell.
Jack Russell are passionate about helping businesses survive in these tough times and give a lot of information and advice for free on their website and as part of their social networking sites. Further planned communication will make the company a greater industry contributor and it is hoped generate a following that can benefit from tips and advice to better manage their businesses. This advice is available and free for all. More profitable businesses also mean businesses that can make greater contribution to their communities, something Jack Russell are passionate about.
Managing Director, Kerry Bland, is a well known supporter of charity events and often caught privately promoting participation amongst colleagues and friends at networking events.
To find out how you can help or get involved please contact Jack Russell’s MD Kerry Bland or one of the prestigious charity organizations in this press release directly.
About Jack Russell Debt Collection & Legal Process Servers
Jack Russell Debt Collection are one of the UK’s most prominent debt recovery services with a network of UK offices serving over 8000 businesses to help them recover their difficult debts. Jack Russell pioneered the “No Collection. No Fee “model for collecting business debts.
Jack Russell work across all sectors in the UK. Some of the business types that have recently benefitted from their services include; recruitment consultancies, day nurseries, IT companies, printing firms, corporate entertainment and accountants and their clients.
Jack Russell’s Managing Director, Kerry Bland, is a passionate supporter and regularly participates in charity fund raising events in the North West.
For further information contact:
Jack Russell Debt Collection & Legal Process Servers Ltd
43 Bedford Street
Tel: +44 (0)800 068 5151
About Children Today
Children Today is the charity that raises funds to provide specialised equipment and services for children and young people with disabilities throughout the UK. The Charity’s aim is to ensure that every disabled child and young person achieves their potential. With your support we can achieve this.
For further information contact
Children Today Charitable Trust
Tel: 01244 335622
Fax: 01244 335473
About the David Lewis Centre
The David Lewis Centre are a registered charity with over 100 years’ experience, David Lewis provides exceptional education, therapy, support and life skill development to individuals with epilepsy, autism and complex learning disabilities. The David Lewis Centre is open 24/7/ 365 days a year and has about 1000 professional teachers and carers who help support over 300 individuals and has fully accessible services, facilities and accommodation for everyone.
Based in Cheshire, David Lewis’ expertise isn’t exclusive to the North West. It’s sought by and available to people across the UK.
For further information contact
Mill Lane Warford
Telephone: 01565 640000
Fax: 01565 640100
Our Managing Director, Kerry Bland regularly participates in charity events and recently completed the Macclesfield Half Marathon to raise money for David Lewis Centre.
Kerry completed the Macclesfield Half Marathon in a very impressive 1 hour and 58 minutes! This follows his fantastic success running for Children Today at the Great North Run, completing the prestigious race in 1 hour and 56 minutes.
All photos taken by James Russell Photography.
Why do Cheques bounce?
Cheques are not as widely used anymore as they are becoming an insecure way of payment due to their frequency to ‘bounce’. Cheques can bounce for many reasons, here are three of them;
1) A ‘Refer to Drawer’, this is where the bank refuses to pay a cheque as the account from which it is drawn does not have sufficient funds (NSF).
2) A cancellation, where the cheque has been cancelled by the owner in advance of it being paid in, often at a charge from the bank.
3) A stopped cheque, where the cheque owner has paid a charge to the bank to stop the cheque from clearing, this can be done after the cheque has been paid in, but must be done before it clears in the beneficiary’s account.
Terms and Conditions act as the backbone of your agreements and you should ensure they lay out your demands effectively. Solid Terms and Conditions that you keep consistent can save your bacon if debt recovery becomes necessary!
“If you are a business with ambitions, make sure you nail down your Terms and Conditions.”
DOs and DON’Ts for Ts and Cs
- Do have a look at the standard Terms and Conditions at www.simply-docs.co.uk. These can be used as a template.
- Do ensure you get your Terms thoroughly checked by a solicitor if you choose to copy someone else’s or use standard Terms from a website.
- Do use recognised Terms. Your respective trade association can often provide these and they fall in line with the laws of the country you are based in. This will aid consistency and assist resolution in the event of any dispute.
- Do ensure that any retention of title clause is included if you are supplying goods. This means that the goods remain property of the seller until the buyer fulfills full payment. It also means the goods can be repossessed by the seller if the buyer falls into bankruptcy.
- Do consider obtaining a minimum of 2 trade references in addition to your Terms. These are useful statements from other companies that you have existing business or credit with.
- Don’t do business with notes on the back of cigarette packets or practise IOU’s! – Ensure your contracts and agreements are properly and professionally laid out, with full Terms and Conditions clearly accessible from the outset.
- Don’t forget to mention, if you are supplying goods by delivery you will only accept the delivery receipt signature of an authorised director or employee of the company. Do state that your goods cannot be signed for by anyone who isn’t previously agreed by both parties and ensure everyone is aware of this.
- Don’t forget to include any contractual interest which becomes payable should a customer pay late. A penalty clause for customers who miss or fail to make a payment can also be included; this can cover any extra costs that the missed or tardy payment has incurred to you. A penalty clause will also encourage customers to make prompt payment in future.
Jack Russell is an accredited member of the following Professional Organisations; Cumbria, Macclesfield, Lancaster and London Chambers of Commerce. The Association of Credit Professionals and the Federation of Small Businesses. Such organisations ensure we always have access to quality advice and support and enable our voice to be heard by local councils and the Government. They also provide regular networking events which we always attend. Come and join us any many other businesses at the next Chamber of Commerce networking event to see what it could do for your business. Our networking schedule can be found here; www.debtcollect.co.uk/2012/06/jack-russell-networking-schedule-summerautumn-2012/
- County Court action generally covers outstanding invoices, return of goods, breach of contract and landlord/tenancy claims.
- If you are considering suing, ensure you comply with the pre-action protocols, some sectors have their own specific protocol for example the Construction and Engineering sector.
- The small claims court now covers anything up to £5k and is generally a fairly straightforward procedure.
“They promise you this, they promise you that
It’s just about time to sue the rat.”
-Kerry Bland, MD, Jack Russell Debt Collection & Legal Process Servers.
- Don’t forget you are entitled to claim statutory interest on late or missed payments at 8% per annum or contractual interest as per your terms.
- Ensure you pay the right court fee for the amount being chased. These costs can be recovered in the event of a successful claim.
- If the debtor is ignoring your contact, a County Court Judgment can be obtained in default.
- If the debt is disputed, the matter is generally transferred to the debtor’s home court.
- Mediation. This now applies as an alternative dispute resolution procedure.
- Gather as much information on your debtor as possible from the start of your agreement. Doing this will speed up the debt collection process and enable you to act before insolvency should it come to that.
- Get things in writing! Agreements for repayment terms or payment plans should always be agreed in writing and a digital and hard copy should be kept safely with the client’s details to be called on at a minutes notice!
- Act quickly! Don’t be afraid to take action as soon as a payment is missed, by not letting the problem escalate you may be able to resolve it quickly without incurring any extra cost to yourself.