Document background
The Late Payment Dispute Letter is a crucial tool in commercial debt recovery under English and Welsh jurisdiction. It should be used when payment terms have been exceeded and informal attempts to secure payment have been unsuccessful. The letter serves as a formal record of the creditor's attempt to resolve the payment dispute before considering legal action. It must comply with the Late Payment of Commercial Debts (Interest) Act 1998 and should clearly state the amount owed, applicable interest, and consequences of continued non-payment. This document is often a prerequisite for any subsequent legal proceedings.
