Amendments of the Late Payment of Commercial Debts (Interest) Act 19983
1
Section 5A of the Late Payment of Commercial Debts (Interest) Act 19987 (compensation arising out of late payment) shall be amended as follows.
2
After subsection (2) insert—
2A
If the reasonable costs of the supplier in recovering the debt are not met by the fixed sum, the supplier shall also be entitled to a sum equivalent to the difference between the fixed sum and those costs.
3
In subsection (3), for “an additional fixed sum” substitute “a sum”.
4
After subsection (3) insert—
4
Section 3(2)(b) of the Unfair Contract Terms Act 19778 (no reliance to be placed on certain contract terms) shall apply in cases where a contract term is not contained in written standard terms of the purchaser as well as in cases where the term is contained in such standard terms.
5
In this section “contract term” means a term of the contract relating to a sum due to the supplier under this section.