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Late payment EU Laws
Thread poster: Julien Lozano
Julien Lozano  Identity Verified
France
Local time: 08:49
English to French
+ ...
Dec 12, 2008

Hello all,

One of my client is really late for the payment of two bills. I know that in France there's a law and that we have to mention it on our bills saying there's an 1.5 % fee per late day of payment. Is there any such thing at euopean level ?


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Nadejda Vega Cespedes  Identity Verified

Local time: 08:49
Spanish to Russian
+ ...
This one? Dec 12, 2008

Directive 2000/35/EC of the European Parliament and of the Council of 29 June 2000 on combating late payment in commercial transactions

[Edited at 2008-12-12 17:46 GMT]


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Uldis Liepkalns  Identity Verified
Latvia
Local time: 09:49
Member (2003)
English to Latvian
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And relevant National Laws Dec 12, 2008

http://ec.europa.eu/enterprise/regulation/late_payments/implementation.htm

Uldis


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Marga Demmers  Identity Verified
Netherlands
Local time: 08:49
Spanish to Dutch
+ ...
Or this European order for payment procedure? Dec 13, 2008

In case you have any clients within the European Union who are reluctant to pay, the new European order for payment procedure may be of interest to you.

A short resume:
"This Regulation establishes a procedure for European orders for payment. The procedure simplifies, speeds up and reduces the costs of litigation in cross-border cases concerning uncontested pecuniary claims in civil and commercial matters. The European order for payment is recognised and enforced in all Member States except Denmark without the need for a declaration of enforceability."

You can find more information right here: http://europa.eu/scadplus/leg/en/lvb/l16023.htm


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Julien Lozano  Identity Verified
France
Local time: 08:49
English to French
+ ...
TOPIC STARTER
How to calculate the amount due for late payment Dec 13, 2008

I don't really understand how o calculate the amount due by the company for the late payment. Can someone help me on that ?

Thanks !


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José Henrique Lamensdorf  Identity Verified
Brazil
Local time: 03:49
English to Portuguese
+ ...
Calculations Dec 13, 2008

Julien Lozano wrote:

I don't really understand how o calculate the amount due by the company for the late payment. Can someone help me on that ?


If your figures are correct (viz. 1.5%/day), you may use
http://www.convertit.com/Go/ConvertIt/Calculators/Date_and_Time/Date_Time_Diff_Calc.ASP
... to find the number of days.

For instance, amount owed = EUR 1,000
Due date: April 30th, 2008
Date paid: December 15, 2008

That site says (watch out for the mm/dd/yyyy format):
From 4/30/2008 (m/d/y) to 12/15/2008 (m/d/y) is:
229 days, or 32 weeks and 5 days

So it's 220 days x 1.5% = 343.5% -) multiplier is 3.435

Amount owed = EUR 1,000 + (EUR 1,000 * 3,435) = EUR 4,435

So I doubt that 1.5%/day is correct, unless the EC is attempting to quickly drive all bad payers there bankrupt... which would be a good thing to do!


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Christel Zipfel  Identity Verified
Partial member (2004)
Italian to German
+ ...
1,5% per day is definitely not correct Dec 14, 2008

That would mean nearly 550% per year!

Please refer to what states the directive 2000/35:

(d) the level of interest for late payment ("the statutory rate"), which the debtor is obliged to pay, shall be the sum of the interest rate applied by the European Central Bank to its most recent main refinancing operation carried out before the first calendar day of the half-year in question ("the reference rate"), plus at least seven percentage points ("the margin"), unless otherwise specified in the contract. For a Member State which is not participating in the third stage of economic and monetary union, the reference rate referred to above shall be the equivalent rate set by its national central bank. In both cases, the reference rate in force on the first calendar day of the half-year in question shall apply for the following six months;

Like José Henrique said, there are calculators on the web whcih allow you to easily calculate the due interest.

HTH!


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Julien Lozano  Identity Verified
France
Local time: 08:49
English to French
+ ...
TOPIC STARTER
Might be wrong Dec 14, 2008

Yes I might be wrong on the 1.5% per day.
Thanks for your help, it's still preatty abstract to me but I'll surely find out how much they owe me


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FarkasAndras
Local time: 08:49
English to Hungarian
+ ...
not that little Dec 14, 2008

Christel Zipfel wrote:

That would mean nearly 550% per year!


Using compound interest, which arguably one would if the interest was set on a per day basis, you get 22800% per year. Ouch.


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