Last chance for UK Businesses to have their say on new Euro Late Payment Law.

The Better Payment Practice Group (BPPG) is campaigning to encourage UK businesses to take part in the consultation process regarding the implementation of EC Directive 2000/35/EC on combating late payment in commercial transactions that was published in February 2001 by the Small Business Service. UK businesses have until Friday, 27th April 2001 to respond, before the consultation closes.

The Directive is good news for UK businesses as it will promote a level-playing field by tackling existing differences in payment rules across Europe. Under the Directive, organisations that do not pay on time may find they have to pay compensation to cover recovery costs, a right not included in the UK’s legislation on the Late Payment of Commercial Debts (Interest) Act 1998. Speaking on behalf of the BPPG, Stuart Blake of the Forum of Private Business said:
“There is less than a month to go before the consultation process ends. It is vital that the UK business community takes part.”

EC Directive
Key features of the directive are as follows:
If the date or period for payment is not fixed in the contract, interest is payable automatically after 30 days.

• Sets a minimum rate of interest at 7% above the European Central Bank or national bank base rate.

• Unless the debtor is not responsible for the delay, the creditor will be able to claim reasonable compensation from the debtor for all relevant recovery costs incurred.

• Organisations who are officially recognised as, or having a, legitimate interest in representing SMEs may take action according to the national law if an agreement is considered grossly unfair.

• A speeding up of legal procedures with courts ruling on unchallenged claims within 90 days.