Late Payment Collection Letter

Late Payment Collection Letter for the United Kingdom

Late Payment Collection Letter Template for England and Wales

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"I need a Late Payment Collection Letter for my software company to recover Ã‚Â£15,000 from a corporate client who has missed three consecutive monthly payments, and I want to include statutory interest calculations and a warning about potential legal proceedings if not paid by March 2025."

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What is a Late Payment Collection Letter?

The Late Payment Collection Letter is a crucial tool in the debt recovery process under English and Welsh law. It is typically used when standard invoicing and reminder processes have failed to secure payment. The letter should clearly state the amount owed, reference original invoices, detail any applicable interest under the Late Payment of Commercial Debts (Interest) Act 1998, and specify a deadline for payment. It often serves as the final step before legal proceedings and must balance firmness with professionalism while maintaining compliance with regulatory requirements.

What sections should be included in a Late Payment Collection Letter?

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

2. Reference Information: Invoice numbers, dates, and account references

3. Debt Details: Original amount, current balance, and payment history

4. Payment Demand: Clear statement of amount due and payment deadline

5. Consequences: Statement of next steps if payment isn't received

What sections are optional to include in a Late Payment Collection Letter?

1. Interest Calculation: Breakdown of statutory interest applied, used when claiming interest

2. Payment Plan Option: Offered when willing to accept installment payments

3. Previous Communications: Reference to prior contact, used in follow-up letters

What schedules should be included in a Late Payment Collection Letter?

1. Copy of Original Invoice: Proof of original debt

2. Statement of Account: Detailed breakdown of transactions and balance

3. Payment Instructions: Banking details and payment methods accepted

Authors

Alex Denne

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

alex.den.21@genieai.co

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