Interest And Late Fees.

[joko]

approximately how much money would you think would be appropriate to add on as late fees, and interest, in these circumstances

fee owed £7000 - at £1000 per week.

was due to be paid at the end of aug 12, early sept, so is now late by 8 months

what kind of addition should i add?

i just want to be fair and not go mad adding loads, even if i am entitled to it.
part of me is furious about this, but part of me knows that mostly this is down to incompetence rather than an malicious attempt to not pay

he has promised to pay in 2 weeks - I'm not holding my breath but want to be prepared should he actually pay


these are other posts regarding this subject for further details - though this question doesn't really depend on other info.

http://www.theanswerbank.co.uk/Law/Question1227063.html
http://www.theanswerbank.co.uk/Law/Question1218163.html

thanks all

[bednobs]

did you have a late penalty built into the contract? If not, can you even add interest?

[factor-fiction]

Hi- what does the figure of £1000 represent? Is that the agreed rate of repayment- total £7000 spread over 7 weeks @ £1000 a week?
If no interest was mentioned in your initial agreement I think your priority should be to get the £7000 back. By all means say you'll charge interest going forwards at maybe 1% a month.
Give a reasonable period in which to pay, but no more than 2 months and say you'll claim through the small claims court if not paid on time

[joko]

the £1000, was my weekly fee, that's how it should have been paid over 7 weeks

he has already agreed that he owes us, and will pay late fees and interest

[ABerrant]

The statutory interest and collection fees applicable to a late commercial payment of £7000 are as follows:

Interest @8.5% pa = 7000 x 0.085 = £595 per annum / 365 = £1.63 per day
(8 months interest approx. £400)

Recovery cost @ £70

https://www.gov.uk/late-commercial-payments-interest-debt-recovery/when-payment-becomes-late