BPPG To Work With The Small Business Service On The Implementation Of New EC Late Payment Directive

The Better Payment Practice Group has announced that it will be working closely with the Small Business Service to ensure that the implementation of the new EC Directive on Late Payment has strong input from the UK business community.

The Directive came into force on the 8th of August and the UK now has 24 months to make any necessary changes to legislation, regulations and administrative provisions to comply. This will include full consultation with all interested parties.

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.
  

Kurt Obermaier, BPPG member representing the Credit Services Association, commented:"The next 24 months is critical in ensuring that the UK business community has full input into the consultation process. Meetings are already being held between members of the BPPG and the Small Business Service. Any business wishing to become involved in the consultation should contact any member of the BPPG to establish their next step."

Full details can be found on the Official Journal of the European Communities’ website at www.eur-op.eu.int.