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Late Payment of Commercial Debts Regulations 2002

Consolidated Text As Enacted Cited authorities 13 Cited in Amendments 6 Related
Vincent
JurisdictionUK Non-devolved
CitationSI 2002/1674
(1) These Regulations may be cited as the Late Payment of Commercial Debts Regulations 2002 and shall come into force on 7th August 2002.(2) These Regulations extend to England and Wales and Northern Ireland (1) The Late Payment of Commercial Debts (Interest) Act 1998 (2) Section 2(5) (c) and (6) (the Secretary of State’s power to specify by order categories of contracts as excepted contracts) are repealed.(3) Section 3(4) and (5) (debts not to carry statutory interest if specified in an order made by the Secretary of State) are repealed.(4) After section 5, there shall be inserted the following section—
    (5A) Compensation arising out of late payment
  • “(1) Once statutory interest begins to run in relation to a qualifying debt, the supplier shall be entitled to a fixed sum (in addition to the statutory interest on the debt) .
  • (2) That sum shall be—
  • (a) for a debt less than £1,000, the sum of £40;
  • (b) for a debt of £1,000 or more, but less than £10,000, the sum of £70;
  • (c) for a debt of £10,000 or more, the sum of £100.
Once statutory interest begins to run in relation to a qualifying debt, the supplier shall be entitled to a fixed sum (in addition to the statutory interest on the debt) .for a debt less than £1,000, the sum of £40;for a debt of £1,000 or more, but less than £10,000, the sum of £70;for a debt of £10,000 or more, the sum of £100.The obligation to pay an additional fixed sum under this section in respect of a qualifying debt shall be treated as part of the term implied by section 1(1) in the contract creating the debt.(1) In this regulation, “representative body” means an organisation established to represent the collective interests of any enterprise, either in general or in a particular sector or area.(2) Paragraph (3) applies where a person acting in the course of a business enters (or intends to enter) as purchaser into a contract to which the Late Payment of Commercial Debts (Interest) Act 1998 applies.the date or period for payment of a debt;the right to interest for late payment of a debt; orcompensation arising out of late payment of a debt;

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