Charging Interest

Charging Interest

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A care home is charging interest on residents accomodation fees not paid on time.

In the case of deceased residents, this amounts to significant amounts where the fees are held up for several months awaiting Probate to be granted.

The particular care home does not have a Consumer Credit Licence. Are they breaking any rules and, if so, what could bne done to resist the payment of the interest charge?
Robert Clubb

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By User deleted
19th Oct 2007 13:30

Late payment legislation
Under the late payment legislation, small businesses are allowed to charge interest at, I think, 8% above base, for late payment, although this may only apply to late payment from other businesses. Are they charging under this legislation?

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By User deleted
22nd Oct 2007 20:45

Terms and conditions
I recently read a care home's terms & conditions and these did have a clause specifying charging interest on late paid care home fees.

II am aware recently of an instance of the bank allowing a cheque for care home fess to be paid from the about to be frozen deceased's bank account, thus alleviating interest charges that might have arisen from the supplier for late payment.

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