Compound Interest

[Glassman]

For a contractor (sole trader) to charge this, does there need to be an agreement / contract / T's & C's etc?

[Plotloss]

If a debt goes distressed and the court process starts you can claim statutory interest on top of the principal.

Prior to that I believe it would need to form part of the terms of the contract.

[Glassman]

I hired a maintenance bloke who turned out to be a chancer - he just wasn't good enough.

There was no contract, no agreement, nish, nada... just a verbal "got a couple of odd jobs for you".

He came up with a figure and I asked for a breakdown. Turns out he was charging way over the odds so he then chopped a third off his invoice total. Trouble is, work is unfinished and what he has done is poor. I've given him a snag list and he's refusing to address any of the issues. Instead, he's posted me an invoice with a note saying he'll charge 33% compound interest per day after seven days.

He was true to his word - after seven days he sent another letter stating that he'll charge 33% interest per week only, he's back dated his 'interest charges' to when the invoice was first presented.

Chancer isn't the word.

[Plotloss]

Statutory interest is 8% per annum divided by the number of days the debt is late.

Thats all a court will honour, if it gets that far and it wont.

[Glassman]

He said:

Your account is now four weeks overdue. You have seven days to settle the balance to prevent this account being sold on or legal action being taken

[spikeyhead]

Plotloss said:

Statutory interest is 8% per annum divided by the number of days the debt is late.

Thats all a court will honour, if it gets that far and it wont.

Its 8% above base rate.

[johnfm]

Glassman said:

He said:

Your account is now four weeks overdue. You have seven days to settle the balance to prevent this account being sold on or legal action being taken

so when he takes legal action he will be able to prove there was a contract for his services and you are in breach?

It doesn't sound like he will be that organised.

[Glassman]

johnfm said:

Glassman said:

He said:

Your account is now four weeks overdue. You have seven days to settle the balance to prevent this account being sold on or legal action being taken

so when he takes legal action he will be able to prove there was a contract for his services and you are in breach?

It doesn't sound like he will be that organised.

We have a few email exchanges which he may have saved. As for the content, it's me questioning his rates.