UPDATED INFORMATION FOR CHAPTER 18:
VOLUNTARY SECTOR LEGAL HANDBOOK
This page contains information that has appeared on Sandy Adirondack's legal update website for voluntary organisations at www.sandy-a.co.uk/legal.htm. For current updates, including potential changes that are in the pipeline, see the legal update website.
These websites for each chapter update
the 2nd edition of The Voluntary Sector Legal Handbook by Sandy Adirondack and James Sinclair Taylor (Directory of Social Change, 2001). The websites are not intended as a comprehensive update and should not be treated as such.
To order a copy of The Voluntary Sector Legal Handbook, print out the order form at www.sandy-a.co.uk/bookserv.htm or send an email order by clicking
. It costs £50 for voluntary organisations or £80 for others, plus 10% p&p. We expect the third edition to be published in 2007.
The information here covers the law applicable to England and Wales. It may not apply in Northern Ireland and/or Scotland. These news items are not a full or definitive statement of the law and are not intended as a substitute for professional legal advice. No responsibility for loss occasioned as a result of any person acting or refraining from acting can be taken by the author.
Chapter 18
LEGAL AGREEMENTS
GUIDANCE ON DISTANCE SELLING
Added 24/4/04. This information updates ss.18.7.3.1 and 45.3 in The Voluntary Sector Legal Handbook 2nd edition.
The Office of Fair Trading issued, in March 2004, a short leaflet about the Distance Selling Regulations. Although these have been in effect since 2000, many businesses and organisations involved in telephone, mail order or internet sales are not aware that they must give customers clear information about the goods or services offered before they buy, confirm the purchase and delivery details in writing, and offer a cooling-off period of seven working days during which the order can be cancelled and a refund claimed.
The leaflet can be ordered from oft@eclogistics.co.uk. The Consumer Protection (Distance Selling) Regulations 2000 are at www.opsi.gov.uk/si/si2000/20002334.htm.
LATE PAYMENT OF DEBTS
Updated 2/1/06. This information updates s.18.7.3.2 in The Voluntary Sector Legal Handbook 2nd edition.
The Late Payment of Commercial Debts (Interest) Act 1998 gives businesses (including voluntary organisations) to whom money is owed a statutory right to charge interest on debts owed to them.
Where a due date has not been agreed, interest can start being charged 30 days after invoice date or 30 days after delivery of the goods or services, whichever is later.
The statutory interest that can be charged is the Bank of England's official dealing rate (called reference rate) plus 8%. The official dealing rate on 30 June is used for interest which starts to run between 1 July and 31 December, and the rate on 31 December is used for interest which starts to run between 1 January and 30 June. The official dealing rate on 31 December 2004 and 31 June 2005 was 4.75%, so the statutory interest rate from January-December 2005 was 12.75%. The rate on 31 December 2005 was 4.5%, so the statutory interest rate for interest that starts to run between January and June 2006 is 12.5%.
Once statutory interest begins to run, the supplier is also entitled to charge a fixed sum as compensation for the costs involved in collecting the debt. The fixed sum is set by the Late Payment of Commercial Debts Regulations 2002 and is:
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£40, for a debt less than £1,000;
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£70, for a debt of £1,000 or more but less than £10,000;
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£100, for a debt of £10,000 or more.
The statutory provisions do not apply if the contract contains other provisions. But note that if those provisions are unfair or excessive, they can be struck out and the statutory provisions will apply.
Further information and calculators for working out statutory and contractual interest are at
www.payontime.co.uk.
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