EU Proposes to Tackle Late Payment
Posted: 9th May 2011
- ‘provision should be made for business-to-business contractual payment periods to be limited, as a general rule, to 60 calendar days…’ (para 13);
- statutory interest due for late payment should be calculated on a daily basis as simple interest (para 15);
- a creditor should be allowed to resort to charging interest for late payment without giving any prior notice of non-performance or giving other similar notice reminding the debtor of his obligation to pay (para 16);
- creditors should be able to claim compensation for recovery costs, including administrative costs connected with late payment (paras 19 and 20); and
- the abuse of freedom of contract to the disadvantage of the creditor should be prohibited.