Late payment EU Laws Thread poster: Julien Lozano
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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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Speranza 
Local time: 20:49
Spanish to Russian
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Uldis Liepkalns
Latvia
Local time: 21:49
Member (2003)
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Marga Demmers (X)
Netherlands
Local time: 20:49
Spanish to Dutch
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| 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 Membe... See more 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 ▲ Collapse
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Julien Lozano
France
Local time: 20:49
English to French
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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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| 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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| 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 other... See more 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! ▲ Collapse
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Julien Lozano
France
Local time: 20:49
English to French
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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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| 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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