Terms of Credit
Under Statutory Instrument 388 of 2002, the Late Payment and Commercial Transactions Regulations were implemented.
These provide for late payment interest where a payment is outstanding in excess of 30 days in a commercial transaction.
These regulations can be read in conjunction with the Prompt Payment Act of 1997. This provides for prompt payment within 42 days.
The position is that under the 2002 Regulations, interest is calculated at the rate of the then ECB rate plus 7%.
The regulations also provide for the removal of any clause that purports to dismiss the rights granted under the 2002 regulation as to interest payment after 30 days.
In these times, it is a regulation of particular importance to businesses as cashflow and debt management become priorities.
At Conways Solicitors, we can advise you in respect of not only the Prompt Payments act but also the very important commercial regulation which provides great assistance to businesses that are finding it difficult to get paid. The punitive rate of interest would hopefully provide some incentive for a customer to be forthcoming with payment.
In respect of a customer who has attempted in the terms of conditions of the contract as negotiated, to wave your right to such interest, Conways Solicitors can assist you with an application to the Circuit Court or, where relevant, the arbitrator appointed under the contract.
We can also advise you in respect of the implications of any pre-existing contract for sale and their terms and conditions in that regard.
The First Step…
Contact our offices and make an appointment by either email email@example.com of on 021 4901000 please consider in advance when would suit you to meet us!