Notice Of Late Payment Template for England and Wales

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Key Requirements PROMPT example:

Notice Of Late Payment

"I need to draft a Notice of Late Payment for an outstanding invoice of £15,000 from our IT services client who has missed three payment reminders, and I want to include statutory interest calculations and a warning about potential legal action if payment isn't received by March 15, 2025."

What is a Notice Of Late Payment?

The Notice of Late Payment is a crucial document in the debt recovery process under English and Welsh law. It should be used when payment for goods or services has not been received by the agreed due date, and informal reminders have been unsuccessful. The notice formally documents the debt, includes calculation of statutory interest, and serves as evidence of attempting to resolve the matter before pursuing legal action. This document is particularly important as it complies with pre-action protocols required by courts in England and Wales, and helps establish a clear timeline of debt recovery efforts.

What sections should be included in a Notice Of Late Payment?

1. Sender Details: Full company name, address, and registration details of the creditor

2. Recipient Details: Full name and address of the debtor

3. Invoice Reference: Original invoice number and date

4. Payment Details: Amount outstanding, original due date, and days overdue

5. Interest Calculation: Statutory interest calculated to date

6. Payment Instructions: Bank details and payment methods accepted

7. Response Deadline: Date by which payment or response is required

What sections are optional to include in a Notice Of Late Payment?

1. Previous Communications: Reference to prior payment requests or communications, used when multiple reminders have been sent

2. Payment Plan Option: Offer of installment payments, used when willing to accept staged payments

3. Legal Warning: Notice of potential legal action, used in final demands

What schedules should be included in a Notice Of Late Payment?

1. Copy of Original Invoice: Reproduction of the unpaid invoice

2. Statement of Account: Current statement showing all transactions and amounts owing

3. Interest Calculation Schedule: Detailed breakdown of how statutory interest has been calculated

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Late Payment of Commercial Debts (Interest) Act 1998: Primary legislation governing late commercial payments, establishing statutory interest rates, defining when payments become 'late', and setting compensation for debt recovery costs

Late Payment of Commercial Debts Regulations 2013: Implements EU Directive 2011/7/EU, sets maximum payment terms and establishes the right to claim interest and fixed compensation for late payments

Companies Act 2006: Specifies requirements for formal business communications and mandates company details that must appear on business documents

Limitation Act 1980: Establishes time limits (6 years) for bringing claims for unpaid debts and affects the timeframe for pursuing late payments

Consumer Credit Act 1974: Governs rules regarding consumer debt collection and establishes requirements for notices to consumers when applicable

Data Protection Act 2018 and UK GDPR: Regulates the handling of personal information in debt collection and establishes privacy requirements

Financial Services and Markets Act 2000: Sets regulations regarding financial communications and proper debt collection practices

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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