This page answers many of the questions we are asked by debtors after they receive correspondence from us. Please contact us if your query is not answered here.
Q: Why have you asked for information on the ownership of my business?
A: We will sometimes write to a business to request information on the ownership of a business where we are uncertain as to the ownership. This could be, for example, because the business is operated by a Sole Trader or (unincorporated) Partnership, or if the business operates using a trading name different from the registered name of the company. Our correspondence explains the information requested, and the legal basis that requires an immediate written response. Further information is available here.
Q: I am not happy with the work done / goods supplied, so the invoice is in dispute. What should I do?
A: If you have a dispute regarding an invoice, or the quality of work done / goods supplied then you should provide Debt Collection Service with detailed information on the dispute contact info and pay the undisputed element of the debt. DCS will contact both the client and the debtor in the hope of promptly resolving the dispute.
Q: What happens if I pay the overdue invoice(s) but not the additional charges?
A: Interest charges continue to accrue until a debt is paid in full.
Q: I have received a letter from DCS. Who should I contact with a query about the debt?
A: You need to contact DCS. Once DCS has been instructed there is no need for you to contact the organisation that you owe money to. Contact details for DCS are in the letter you received and are also here.
Q: Where do I send our cheque?
A: You should post your cheque to Debt Collection Service, Easton Business Centre, Felix Road, Bristol BS5 0HE. Please make your cheque payable to the company you owe the money to (do not make your cheque payable to Debt Collection Service). Please quote the case number when sending your payment. Or, contact us if you prefer to pay by bank transfer or cash.
Q: Can I pay via bank transfer, BACS, CHAPS etc?
A: Yes. Please contact us and we will email you the bank account information for where the payment needs to be sent, and the reference that you will need to quote. (We do not give bank account details by phone.)
Q: You have included interest charges when calculating the total debt. How were these calculated?
A: Interest charges are calculated in accordance with the Late Payment of Commercial Debts (Interest) Act 1998 as amended by The Late Payment of Commercial Debts (Rate of Interest) (No 3) Order 2002. Interest is calculated from the date the invoice became overdue until the invoice has been paid in full. Further information is available here. Interest charges after the issue of a County Court Judgment may be calculated at the rate of 8% pa, as specified by the County Court Act 1984, s69.
Q: We have not previously agreed to pay interest on late payment. What authority do you have to charge interest?
A: For business-to-business debts, interest charges are calculated in accordance with an Act of Parliament: Late Payment of Commercial Debts (Interest) Act 1998 as amended by The Late Payment of Commercial Debts (Rate of Interest) (No 3) Order 2002. Specific notification is not required as the charges are calculated in accordance with an Act of Parliament.
Q: You have charged us a “Late Payment Fee” or “Compensation Entitlement”. Why?
A: There is a set scale of Late Payment Fee / Compensation Entitlement depending on the value of each overdue invoice (or payment). The scale charges are currently:
Size of unpaid debt: Up to £999.99 = £40.00 £1,000 to £9,999.99 = £70.00 £10,000 or more = £100.00 more info
Q: We have not previously agreed to pay a Late Payment Fee or Compensation Entitlement. What authority do you have for these charges?
A: Late Payment Fees or Compensation Entitlement is calculated in accordance with an Act of Parliament. The Late Payment of Commercial Debts Regulations 2002 (SI2002/1675) added an additional clause to the Late Payment of Commercial Debts (Interest) Act 1998. Specific notification or consent is not required as the charges are calculated in accordance with an Act of Parliament.
Q: My solicitor / legal adviser / mate in the pub say that charges can only be added to a debt by a Court.
A: They are wrong! Please see above.