Am I entitled to interest on recovered debts? Debt Recovery
Hopefully, these will have been incorporated within your contract through your terms and conditions of business. If you do not have a contractual agreement with the debtor, then at the outset of proceedings, your solicitor will claim interest on recovered debts on your behalf. This can happen through Section 69 of the County Courts Act where interest can be claimed at the rate of eight per cent per annum.
If the debt due falls under a business to business contract, you may be able to claim interest under the late payment legislation at 8.5 per cent per annum.
In addition, you can claim compensation for each outstanding invoice, which may be £40, £70 or £100 per invoice depending on the value outstanding. Under the 2013 regulations, reasonable costs can also be claimed in addition to the debt and interest.