Debt Recovery
Late payment demands
A Late Payment Demand (LPD) is a Letter Before Action claiming Late Payment interest and compensation. LPD's are a highly cost effective way of getting a contribution to your collection costs or even covering them completely. You can claim interest at 8% over Bank of England Base Rate and compensation of £40 - £100 for each unpaid invoice.
When can you use it?
You can claim Late Payment Interest and Compensation if:
- You have supplied goods and services
- Your Buyer bought for business purposes
- The contract is not a consumer credit agreement
- The contract does not contain a provision for interest on overdue invoices (or any other substantial remedy for non payment)
- The order was placed after 6th August 2002
If you can't send an LPD because your contract contains a provision for interest, you could claim contractual interest in your LBA.
Your next step
- 1. Who will you be dealing with? Meet the Debt Recovery Team
- 2. Let us call you. Request a call back
- 3. Do you have any questions? Email an enquiry
- 4. Online help and advice: Visit Online Resources