Late payment letters, letters before action, payment plans and settlement agreements for England and Wales. Statutory interest under the Late Payment Act 1998. From £4.99.
Termsmith covers the full debt recovery and dispute resolution lifecycle under the law of England and Wales — from the first late payment letter through a formal letter before action and payment plan agreement to commercial settlement on agreed terms. Every document is designed by a practising English solicitor and reflects the current pre-action protocol requirements and Late Payment of Commercial Debts (Interest) Act 1998 statutory interest regime.
Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses can charge interest at 8% above the Bank of England base rate on overdue B2B invoices, plus fixed debt recovery compensation of £40, £70 or £100 depending on the invoice amount, plus reasonable recovery costs. Termsmith's free Late Payment Interest Calculator quantifies what you are owed before you write the letter.
The Civil Procedure Rules require creditors to send a compliant letter before action before issuing county court proceedings. Failure to follow the pre-action protocol for debt claims can result in cost sanctions even if you win your case. Termsmith's Letter Before Action and Late Payment Letter are drafted to meet the protocol requirements for both business and individual debtors.
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