Credit Card Debt Guide

They say that prevention is better than cure, so in this context it will be better if the small organisation and large organisation have agreed a late payment section in their contracts, so that both parties understand the consequences of withholding payments till after the final date for payment. But if such a section is not a part of the contract then at least for the small organisation, help is present in the form of the “Late Payment of Commercial Debts (Interest) Act 2002”. This legislation firstly sets out a date by which the account should be paid as 30 days from presentation of the account for services provided, or 30 days from delivery in the case of the supply of products. The small organisation has the option to demand a single fee as some compensation for the Debt collection activity carried out and also to charge daily interest on the outstanding debt balance. The rate of interest is set by the date by which the debt becomes overdue, where debts that become overdue between January 1st and June 30th the rate is 8% over the Bank of England base rate as on December 31st of the previous year. For debts that become overdue between July 1st and December 31st, the rate is 8% over the base rate on June 30th. The single fee is fixed and is dependant on the value of the debt as follows:

For debts less than

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