Understanding Your Rights as a Creditor #
Core Legal Rights #
As a creditor in the UK, you have several fundamental rights:
- The right to be paid in full and on time
- The right to charge statutory interest on late payments
- The right to claim reasonable debt recovery costs
- The right to take legal action to recover debts
Late Payment Rights #
Under the Late Payment of Commercial Debts (Interest) Act 1998:
- You can claim statutory interest (8% + Bank of England base rate)
- You can claim fixed compensation for recovery costs
- These rights cannot be contracted out of unfairly
Contract Rights #
Your contractual rights may include:
- Specific payment terms and deadlines
- Agreed interest rates for late payment
- Right to suspend services
- Termination clauses
- Retention of title clauses
Rights in Insolvency #
If your debtor becomes insolvent, you have the right to:
- Receive notice of the insolvency
- Submit claims for money owed
- Vote in creditor meetings
- Challenge certain transactions
- Receive updates on proceedings
Enforcement Rights #
You have the right to:
- Issue statutory demands
- Begin court proceedings
- Enforce court judgments
- Petition for bankruptcy/winding up
- Use debt collection services
Protection Rights #
You are protected by:
- Laws against unfair contract terms
- Regulations on payment practices
- Rights to challenge transactions
- Access to various legal remedies