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Additional Debt Collection Costs

The Late Payment of Commercial Debts Regulations 2013 (SI2013/395)
amended the
The Late Payment of Commercial Debts (Interest) Act 1998
and introduced the right to charge
Additional Debt Collection Costs

 

The Late Payment of Commercial Debts (Interest) Act 1998 (Section 5A (2A), as amended by The Late Payment of Commercial Debts Regulations 2013 (SI2013/395), states:

"If the reasonable costs of the supplier in recovering the debt are not met by the fixed sum [i.e. Compensation Entitlement], the supplier shall also be entitled to claim a sum equivalent to the difference between the fixed sum and those costs."

Where applicable, DCS will calculate this additional charge and include within the calculation of the total debt. The additional cost may be increased as the additional costs incurred in pursuing the debt also increase.

legislation extract