Directive on late payment

United Kingdom
31/07/1999
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The Council has adopted a common position on the Directive combating late payment in commercial transactions. The Directive introduces a statutory right to interest, which should be sufficiently high to compensate the creditor for the loss incurred. If the Directive is adopted, creditors will be able to claim 8.5% interest on arrears. Interest will be payable thirty calendar days after the receipt of the invoice unless otherwise specified in the contract. Late payment will constitute in itself a breach of contract which would be automatically sanctioned. For certain categories of contract, Member States will be able to fix a period of sixty instead of thirty calendar days after which interest will become due. The European Parliament will consider the text in a second reading in the Autumn and the final adoption of the Directive could take place in the Spring of 2000. (IP/99/598)

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