tag:blogger.com,1999:blog-3993498847203183398.post1444171829959674092..comments2024-03-28T09:19:27.451+00:00Comments on RevK<sup>®</sup>'s ramblings: Late payment penalties - good or bad business?RevKhttp://www.blogger.com/profile/12369263214193333422noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-3993498847203183398.post-29867558852633931122015-07-14T08:35:01.583+01:002015-07-14T08:35:01.583+01:00I even had to Form 4.1 them for my salary after th...I even had to Form 4.1 them for my salary after they made me redundant! Must admit that I wasn't especially sorry to lose that job.Steve Hillhttps://www.blogger.com/profile/09798286430189689578noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-51365241973432328412015-07-13T14:23:06.030+01:002015-07-13T14:23:06.030+01:00Crazy!Crazy!RevKhttps://www.blogger.com/profile/12369263214193333422noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-91787638272060339452015-07-13T14:20:21.059+01:002015-07-13T14:20:21.059+01:00Many years ago I was working for a company who'...Many years ago I was working for a company who's policy seemed to be to pay everything as late as they could. Got to a point where the company was blacklisted by all of the major mobile network operators (which was a problem, given that the company's business was developing systems that use the mobile networks...) and on several occasions they've had an office full of staff sitting there twiddling their thumbs for a day while they wait for someone to pay the power bill and get the electricity turned on again.<br /><br />I hear they are still operating in exactly the same way and I've been told that their investors actually insist on them operating like that. Seems like a completely bonkers way to run a business - I'm sure any money they might have saved by paying late has been well and truly eclipsed by the cost of the problems this policy has caused.Steve Hillhttps://www.blogger.com/profile/09798286430189689578noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-81552328015706208242015-07-12T05:57:35.209+01:002015-07-12T05:57:35.209+01:00Well, the regulations specifically limit such agre...Well, the regulations specifically limit such agreements, else that would be part of terms on every purchase order. Also, I would also have relied on the promise (in contract) for them not to pay late. But I am not a lawyer.RevKhttps://www.blogger.com/profile/12369263214193333422noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-12196505758996418832015-07-12T00:34:49.693+01:002015-07-12T00:34:49.693+01:00>>>>>It is, however, my policy not ...>>>>>It is, however, my policy not to deal with companies that impose any kind of late payment charge and I am surprised that previous payments have been made. Unless I get confirmation that no further late payment charges will be added to my accounts, I will take steps to cancel all services with AA.<br /><br />Your response should have been something like:<br /><br />"We will be more than happy to ensure no late penalties are applied to your account. All you have to do is pay on time. Unless I get confirmation that all of your payments will be made on time, I'll be forced to find another customer."Chad Hhttps://www.blogger.com/profile/06466797076721870606noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-24318366842291459462015-07-11T21:56:11.699+01:002015-07-11T21:56:11.699+01:00I believe promissory estoppel may stop you from en...I believe promissory estoppel may stop you from enforcing late payment charges if you promise someone that you won't enforce them and they then rely on that promise. I doubt it would arise in the above case since the person didn't rely on that promise, but worth bearing in mind.<br /><br />(Disclaimer: I am a solicitor, I am not *your* solicitor).DrAlbanhttps://www.blogger.com/profile/18200275249304885716noreply@blogger.comtag:blogger.com,1999:blog-3993498847203183398.post-67234000435552534512015-07-11T01:05:51.258+01:002015-07-11T01:05:51.258+01:00Probably an issue of semantics rather than substan...Probably an issue of semantics rather than substance, but I am not sure that a contractual term which purports to oust interest at the statutory rate (and in the absence of another substantial remedy) is "illegal" — it is not a crime, or even a civil wrong, as far as I know, to enter into a contract with such a term. The impact, as you say, is that the term is not effective.Anonymoushttps://www.blogger.com/profile/18427000118752159232noreply@blogger.com