Recovering overpayments to former employees can be an easy process that need not result in large legal costs.
Debt recovery for the education sector is a varied and complicated issue, particularly for the higher education sector including universities and distance learning providers. Overdue payments can range from library or parking fines, to unpaid accommodation or even tuition fees. At a time when education system budgets are under severe pressure, it is of the utmost importance for any institution to stay on top of its cash flow and secure any late payments through a debt collector.
Our client is a major company which deals in shares. They had a debt in China for just over £4,000 which they instructed Lovetts' overseas prelegal department to recover on a no collection, no fee basis.
This case study shows how by using the Claim the Unclaimed service provided by Lovetts, which uses the Late Payment of Commercial Debts (Interest) Act 1998 to recover historic interest and compensation, one client was able to recover over £41,000 in interest and compensation on past late paid invoices over the last six years.
Our client, a lighting specialist had paid a company monies to hold stock on its behalf. The defendant, a Director of the Company, had signed a declaration confirming that the company was holding the stock paid for. The company then went into liquidation
This case study is a good example of how you can use the Late Payment legislation to claim interest, compensation and costs to cover your internal and external costs when pursuing unpaid invoices. It also highlights that the Late Payment legislation can be a strong negotiation tool to ensure full collection of all your unpaid invoices. In this particular case, an additional £2,000 in compensation was recovered on top of the debt of £27,000 for our client. This covered all their legal & internal costs of recovery.