| If your debts are not "Qualifying Debts" | ||
| We can help in two ways | ||
| (1) Debtclaims.com still calculates both the County Court interest payable on a consumer debt or bounced cheque and the court fees which will be payable in your Letter of Claim - so you can use them in a similar way in your letters as a payment incentive. One point to remember is that, unlike Late Payment Interest you lose the right to ordinary interest if your debt is paid in full before the commencement of proceedings, so you cannot claim 'back penalties' this way as you can with Late Payment Penalties. So if the debtor pays and ignores you request for interest and/or a letter charge - there is nothing much you can do about it. | ||
| (2) We can help you make your future debts into qualifying debts if the only reason they do not qualify is due to having contract terms and conditions which already contain an interest entitlement. Click the 'Do my debts qualify' side tab to find out of your debts qualify. If the only reason you do not qualify is because of your terms and conditions you can modify them using the clause below to ensure your debts do become qualifying debts. This clause is designed to give you contractual interest if late payment interest is not available for any reason. Alter the wording in brackets to suit your own circumstances and nomenclature. | ||
| "Interest on late paid debts If [the Customer] makes payment of the price of the [goods/services/or whatever is being sold or provided] after the agreed credit period has expired [the Company] will rely on the provisions of the Late Payment of Commercial Debts (Interest) Act 1998 or any statutory modification or successor thereto, and upon the Regulations made under it. If for any reason the agreement should not be governed by the Law of England and Wales or if for ay other reason the said Act should be found not to apply, [The customer] agrees to pay interest on the said debt or the balance thereof outstanding from time to time from due date of payment to actual date of payment at the rate of [here set out your chosen alternative reference rate, e.g. BOE minimum lending rate plus 10%]." | ||