Late Payment of Commercial Debts (Interest) Act 1998
The statutory rate of interest is currently 8.5%pa. The charge applies from the date each invoice (or debt) becomes overdue until the invoice (or debt) is paid in full.
The Late Payment of Commercial Debts (Interest) Act 1998 introduced the statutory right to charge interest on late paid invoices etc.
The Late Payment of Commercial Debts (Rate of Interest) (No. 3) Order 2002 Regulations (SI2002/1675) subsequently amended the Act by adding:
The 'official dealing rate' is defined as:
The currently (and previous) decisions of the Monetary Policy Committee of the Bank of England (i.e. the Bank of England interest rate) are available here.
We calculate interest charges on debts referred to us for collection.
Interest accrues until the invoice(s) is paid in full.