Payment Reminder (Including Commercial Debts Act Interest)
Updated and co-ordinated records are essential to effective debt collection. An audit trail of credit related documents will facilitate prompt payment as well as establishing the indebtedness in the event of late or disputed payments and any subsequent legal action.
This payment reminder letter sets out to record the late payment, the amount outstanding, the invoice(s) in respect if the amount and the breach of credit terms. It requests payment by return or pending payment correspondence to explain the delay.
The Payment Reminder letter refers to the Late Payment of Commercial Debts Act, and provides the basis for the calculation of that interest. Statutory interest is charged at 8% above the base rate set by the Bank of England. If the amount represents more than one invoice a Statement should be enclosed with the letter so that the balance payable can be easily verified. A sequence of letters are provided, with stronger wording if and as payment continues to be outstanding, culminating in a "letter before (legal) action".
This template is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.