Q&As

Where Party A has acknowledged a debt due to Party B, but is silent as to interest on the debt, can Party B seek to recover interest on the debt and at what rate?

read titleRead full title
Published on LexisPSL on 12/12/2017

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Where Party A has acknowledged a debt due to Party B, but is silent as to interest on the debt, can Party B seek to recover interest on the debt and at what rate?
  • Interest generally
  • Claiming interest in pursuing a claim to recover the debt
  • Limitation and acknowledging debts

Interest generally

Where a sum of money is due from one party to another, whether interest is payable on repayment of the capital—and at what rate—will depend on the terms of the agreement pursuant to which the debt arose.

You should be aware, however, that there are certain scenarios where statutory interest may apply, for example, under the Late Payment of Commercial Debts (Interest) Act 1998 (LPCD(I)A 1998) (which allows businesses (and organisations in the public sector) to claim statutory interest for late payment of commercial debts). See Practice Note: Late Payment of Commercial Debts (Interest) Act 1998. This may not apply, however, if the debt is one which has arisen between two private individuals.

Claiming interest in pursuing a claim to recover the debt

If Party B intends to bring proceedings to recover the

Popular documents