IS IT POSSIBLE TO DEMAND DEBTOR TO PAY INTERESTS AND COMPENSATION FOR DEBT COLLECTION COSTS?
Statutory right to interest
According to Decree-Law no. 62/2013, of 10 May (under the European Directive 2011/7/UE combating late payments in commercial transactions), creditors have the statutory right to claim interest for late payment at the European Central Bank base rate plus 7%. Interest is normally payable from the end of the agreed credit period. If no credit period was agreed, interest is payable 30 days from the later of:
- The date of supply, or;
- The date the buyer was told the amount due;
- The conclusion of any procedure for checking that the goods conform to the contract (and the procedure itself cannot take more than 30 days).
If concerns to a public authority, interest will be payable after 30 days, even if a longer payment date was agreed (except for health care providers, concerning these entities the period may be 60 days).
Compensation for debt collection costs
The creditor is also entitled to compensation for recovery costs for a minimum sum of €40 without the need for a formal request. Notwithstanding, the creditor has the possibility of providing evidence that he incurred in a reasonable amount of higher costs (in particular lawyers’ and paralegals’ fees), and claiming for a higher compensation.
In brief, when is the case of a commercial supply of goods and services, for invoices that are not paid on time, the creditor can claim interests and debt collection costs.