A Late Payment Demand (LPD) is a Letter Before Action claiming Late Payment interest and compensation. LPDs 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 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 6/8/02
If you can't send an LPD because your contract contains a provision for interest, you could claim contractual interest in your LBA.
Further Debt Recovery Information
We are a friendly, easy to deal with firm offering a debt recovery, credit control and insolvency service tailored to your needs and budget.
To arrange a discussion with no obligations contact out Debt Recovery Manager, Emma Northall, at our Wolverhampton Office on 01902 392421.
