Commentary

3 Late Payment of Commercial Debts (Interest) Act 1998

BANKRUPTCY AND INSOLVENCY (INDIVIDUAL INSOLVENCY) vol 3(2)
| Commentary

3 Late Payment of Commercial Debts (Interest) Act 1998

| Commentary

3 Late Payment of Commercial Debts (Interest) Act 1998

The Late Payment of Commercial Debts (Interest) Act 1998 gives a statutory right to claim interest on the late payment of commercial debts by making an entitlement to interest on qualifying debts an implied contract term. Interest may be claimed at 8% per year over the ‘official dealing rate’1 in force on the appropriate date2.

The Act was brought into force in stages. All businesses and public authorities are now able to claim interest on qualifying debts from all other businesses and public authorities. As interest is contractually

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