Debt Collection

Life Under the Late Payment of Commercial Debts Regulations 2013

The Late Payments Directive, known more technically as Directive 2011/7/EU or the Late Payment of Commercial Debts Regulations 2013, came into force on March 16th and should mean better protection for businesses of all sizes - from freelancers to big brands, and including the public sector - when chasing late payments.

Generally speaking, the Directive puts 30-day payment terms on contracts where a longer deadline is not mutually agreed, and allows you to charge fixed fees, statutory interest, and reasonable recovery costs on any action you take after that deadline has passed.

Dodgy Debt Collection Agencies Liquidated

Remember Dodgy Dave, the debt collector you don't want to meet? Well, we described that article as "a work of fiction" but warned "this kind of person is out there".

Now it seems Slippery Stu - or, to use his real name, Stuart Paul Cooper - is a real-world example of the kinds of debt collecting 'methods' we outlined in our Dodgy Dave article.

The Kernel's Secret Recipe for Unpaid Invoices

Take one technology, media and politics website. Add a 28-year-old online entrepreneur who used to be called Milo Wagner, but is now called Milo Yiannopoulos. Don't add any paid invoices to freelance contributors - these could leave a sour taste in the mouth. Finish with an unpaid editor and a legal claim for £16,853.

You've got The Kernel's secret recipe, and it's one that's been stewing for some time. Contributors have reportedly been disputing payments for several months, and an estimated £10,000 or more is still owed to past writers and in copyright claims to photographers whose works were allegedly used without permission.

Making Not-So-Small Claims for Late Payment

When late payment goes beyond the limits of amicable pursuit, and it becomes apparent that the funds will never be willingly forthcoming, the remaining option is to go to court, in order to force the debtor to pay.

Depending on how much you are owed, you may be able to do this in small claims court, or you might have to launch more formal legal proceedings, which are likely to prove more expensive.