incline9edge

An attempt to evade late payment charges

Posted in September 2015

Sustainable Connections are a specialist recruitment company suppling temporary and permanent engineers, designers, managers and sales staff to renewable energy companies, in particular those involved in off shore wind projects. The business has enjoyed a 300% increase in turnover since 2012 and is now the clear industry leader in its field.

A straight forward debt collection case

Advocate was instructed to recover an account of £18,600 made up of several invoices for the supply of temporary labour to a wind turbine installer in Scotland. The oldest invoice was now 7 months old and all requests for payment had been ignored or met with false promises of payment We carried out some initial investigations and found that although the debtor company had experienced a recent downturn in turnover and profitability, there had been no CCJ’s awarded against them and the likelihood was that they could and would pay up if faced with Court action.

An attempt to avoid the charges incurred by late payment

We issued an initial demand by post and email requesting payment of £19,452.30 within 7 days and warned of possible Court proceedings. We telephoned the debtor 4 days later to follow up the demand for payment and were informed that a payment had been made directly to our client that morning. Our client confirmed that they had received a CHAPS payment for £18,600 and asked us if any fees were payable by them as the debtor had not paid the late payment charges. We explained that our services are supplied free of charge to the creditor and we would pursue the debtor to recover the late payment charges to cover our costs.

Unfortunately this is not an uncommon scenario, some debtors are ignorant to the fact that by settling an account late they have incurred late payment charges, while others simply refuse to pay the charges. In this, as in most cases the debtor paid the late payment charges of £852.30 once we explained that paying the principal amount did not cease their liability to pay the charges incurred up to the payment date and that the charges are legally enforceable and we would issue a Court claim to recover the charges if forced to do so.

The law is on our side

In cases where the debtor will not pay the statutory late payment charges they have incurred we will issue a claim in the County Court. Advocate’s debt recovery and debt collection procedures are carried out in accordance with current EU late payment legislation, which is relied upon by us in Court. On each and every occasion we have been forced to issue proceedings to recover late payment charges, the Court has ruled in our favour.

 

Da Feefo

Checking...

Ouch! There was a server error.
Retry »

Sending message...

Quick Contact

Send us a message and we will get back to you within an hour.

Spam Prevention Question

6 + 8 =

Latest Recoveries

  • June 18, 2019

    Advocate’s free debt collection agency secures payment of £11,224.58 in 7 days from a West Midlands Local Authority on behalf of a Walsall based Care Staffing Agency.

  • June 17, 2019

    £9,288.34 recovered from a Luton based Road Haulage Company and paid to a Peterborough based Fork Lift Truck Company 6 days after we commence action.

  • June 13, 2019

    Our client a Taunton based Packaging Manufacturer received a free debt collection service following the recovery of £17,882.12 in 8 days from a Bath based Commercial Bakery.

  • June 12, 2019

    Advocate’s business debt recovery service results in £5,625.24 being recovered from a Swindon based Dating Website Operator and paid to a Bristol based Digital Marketing Company 6 days followining our instruction.

  • June 11, 2019

    Our no win no fee debt collection service results in a Hull based Catering Supplies Company receiving payment of £12,350.13 from a York based Hotel just 4 days after we received the instruction.

Latest News