[Linda Olive]

Does anyone know whether there is anywhere in the Act that Council should not charge interest on Sundry Debtors?

[Susan Pardy]

Hi Linda,
I am not a specialist in the area of sundry debtors, but I have been led to believe that in the Act being silent on interest on sundry debtors whilst being specific in relation to rates and charges that it is exclusive in its absence. Also, I haven’t reviewed consumer credit legislation in many years so am not certain whether this is accurate. I would love to hear from any Councils that have received legal advice or found conclusive evidence that interest on sundry debtors is permissible as we currently do not charge interest.
Thanks,
Susan

[Linda Olive]

Thanks Susan.

[Brigitte McFarlane]

Hi Linda,

Have you received any further information with regards to charging interest on debtor accounts?

ta

Brigitte

[Simone Fisher]

Hi, sorry about the late reply. Advice that I’ve received in the past is that interest can only be applied to sundry debtors once judgement has been obtained & then the court interest rate would apply. The exception to this would be if default interest has been stipulated in the contract or agreement relevant to the debt.
Thanks,
Simone

[Brigitte McFarlane]

Thanks Simone.

[Dallas McConnell]

Hi Linda,
Simone is correct, as far as I understand it interest can only be charged to a sundry debtor after Judgment is obtained or unless it is stipulated in terms and conditions of the contract. Here at Wollongong we are rolling out a late payment fee on sundry debtor invoices as of 1st July 2016, which was adopted as part of our fees and charges for 16/17

[Linda Olive]

Thanks Simone & Dallas. Sorry Brigitte for not getting back to you, but was away on a nice holiday. We currently are not charging interest as we only have approximately 200 debtors.

[Author]

Posts