Late fees

[darrenb]

According to the Late Payment Acts of 1998 and 2002, you can charge a penalty and interest if an agency is lagging on payment (an all too frequent story).

There seems to be a problem in the application of the Act though. It is easy for large businesses to charge penalties to small businesses, but small businesses are often just too frightened to charge them to large businesses. They don't want to lose business and they don't have the same legal resources.

So the question I have is: has anyone actually ever been successful in charging these fees to an agency or client?

[RichardCranium]

A different industry, but...

My self-employed wife has twice used this successfully against publishers. In one instance it got payment of the original invoice by return of post, in the other a sincere apology by phone, full payment + interest and more work!

[MPwannadecentincome]

According to the Late Payment Acts of 1998 and 2002, you can charge a penalty and interest if an agency is lagging on payment (an all too frequent story).

There seems to be a problem in the application of the Act though. It is easy for large businesses to charge penalties to small businesses, but small businesses are often just too frightened to charge them to large businesses. They don't want to lose business and they don't have the same legal resources.

So the question I have is: has anyone actually ever been successful in charging these fees to an agency or client?

Make sure your contract has a late payment clause in - it can mention the Act. Then when the client is late in paying to can say they agreed to it in the contract.

[thunderlizard]

Yes. The large company didn't bat an eyelid.

[Beefy198]

Make sure your contract has a late payment clause in - it can mention the Act. Then when the client is late in paying to can say they agreed to it in the contract.

I'm pretty sure you don't actually have to mention it at all, however they of course recommend you do to smooth things over.

[darrenb]

Yes. The large company didn't bat an eyelid.

Good to hear. At least there's one success story of charging late fees.

Was that through an agency though?