Late Payment of Commercial Debts (Interest) Act 1998

Regional Relevance

(ACT UPDATED : 2002)

How does the Act apply to Scotland?

The Act does apply in Scotland but it can be amended or replaced by the Scottish Parliament because Scotland has its own legal system. Additionally, the Scottish Executive can change the interest rate, the phasing of the right to claim interest and the nature of contracts and debts covered by the Act. Should any of these occur, there will be close consultation with Westminster to maintain a co-ordinated result.

How does the Act apply to Wales?

England and Wales share the same legal system and the Act applies to Wales in the same way it applies to England.

How does the Act apply to Northern Ireland?

The Act also applies to Northern Ireland.

Will European Law affect our right to claim interest?

An EC directive on combating late payment was adopted on June 15, 2000 and will take effect in all member states by August 8, 2002. The Directive may well result in changes to the domestic legislation in time. When this occurs, the Small Business Service will turn to the business community for their input regarding implementation.