Late Patment Compensation

[razzles]

Hi,

One of our supplies went into liquidation, a few months ago, just before this happened, we made a payment to them, this got returned to us from their bank (online bacs payment). Thought something was going on, so waited to hear some more.
Got a letter from a solicitors yesterdsay asking from the amount outstanding (£88.19) and £40.00 Late Patment Compensation. Have no problem paying the 88.19 not the 40 extra, this is the first time we have been asked for the money since the payment was returned to us. Do we legaly have to pay the £40 extra or is it the solicator just "trying" to raise some extra cash, I am sure the people they owe wont benifit!
Any advise please.


Anthony

 

[GRDCredit]

I'm with you. Pay the £88.19 straight away and let them whistle for the Late Payment Fee!

 

[business123]

Pay the £88.19 to the solicitors and send a copy of the bank staement showing the payment made and then returned.

 

[it_man_uk_2002]

They are probably just trying it on.

 

[Arhiann]

You could try not paying it, but it is legally enforceable and in fact is the only part of late payment act that a court has no right to remit.

From 7 August 2002, the Late Payment of Commercial Debts (Interest) Act 1998 was amended to include the compensation payment. The court has the right to remit the interest, but not the compensation amount.

 

[PromoAde]

I'm with you. Pay the £88.19 straight away and let them whistle for the Late Payment Fee!

I agree. They may have sent out a lot of letters like this, so may not have picked up on your earlier attempt to pay.

 

[GRDCredit]

Whisper it and I am sure you have more ethics than this but you would probably get away with not paying anything.

If the supplier has gone bust they will not spend money pursuing you into court for that sort of money!

 

[Arhiann]

Whisper it and I am sure you have more ethics than this but you would probably get away with not paying anything.

If the supplier has gone bust they will not spend money pursuing you into court for that sort of money!

If the supplier has gone bust it's likely that whoever is winding up will pursue it. In context it is a cut and dried case for which you have no defense. If they choose to pursue it and I think it likely they will you *will* lose in court. If it goes to court they have to right to add interest and also to charge solicitors fees.

Consequently your small debt could end up being something like:

88.19 capital amount
5.00 interest (just a guesstimate)
40 court fee (from memory, not sure of the amount)
65 summary judgement fee (again from memory)
80 solictor's fee

if they choose not to opt for summary judgement then it could be much worse since I think listing and allocation fees will be about £300

I would try just paying the capital amount and see what happens, but if they insist on the £40 fee your defense of trying to pay is unlikely to wash and I think it best you pay or risk the consequences as shown above. You knew the payment had been rejected (it doesn't matter what the reason is) and it is incumbent upon you to make sure it is paid.

 

[toddle2u]

Just pay the £88.19. Beleive me they will be happy to get that and will not pursue the £40

 

[yorkshirejames]

if they choose not to opt for summary judgement then it could be much worse since I think listing and allocation fees will be about £300

In the small claims track? I don't think so.

If it were me, I would ask them for any evidence they have that this is a genuine debt. Make them produce delivery notes, contracts, etc. Remember that the debt collector won't have access to the insolvent companies records. They will have literally bought this debt for a couple of pence in the pound, so none of it will go to where it is morally owed - all you will do by paying it is make some dodgy debt collector rich.