Purpose and Scope
- This policy sets out Fix First Heating Ltd’s approach to managing overdue payments in a fair, transparent and lawful manner.
- It applies to all customers, whether consumers or businesses, who enter into contracts for our goods and services.
- The objective of this policy is to recover debts in a way that supports positive customer relationships, encourages communication, and complies with all relevant legal and regulatory standards including the Consumer Rights Act 2015 and the Debt Respite Scheme Regulations 2020.
Preventative Measures - We aim to reduce the risk of late payment through preventative action.
- All customers are issued with clear terms and conditions outlining payment expectations, due dates and methods. Service quotations and invoices include the relevant payment schedule and reference number.
- In addition, we undertake proportionate checks on new business customers to establish reliability and ability to pay. Customers are encouraged to communicate with us as early as possible if they anticipate difficulty meeting payment deadlines.
Invoice and Payment Terms - Unless otherwise agreed in writing, payment is due immediately upon receipt of invoice.
- For works exceeding £1,500 or involving special-order materials, staged payments may be requested.
- Accepted payment methods include bank transfer, card payment (with credit cards incurring a 2.5% fee), and cash by prior arrangement.
- If payment is not received within the timeframe stated, the invoice is considered overdue and recovery steps may be initiated.
Initial Contact and Reminders - If payment is not received by the due date, we will issue an initial payment reminder by email or letter. This reminder will outline the overdue amount, original invoice details, and request payment within a further 7 days. If payment is not received, a second, firmer reminder will be issued, which may include notification of interest charges and administrative fees.
- Where applicable, interest will accrue daily at 8% above the Bank of England base rate in accordance with our Master Terms and Section 69 of the County Courts Act 1984. A fixed late payment charge of £30 (including VAT) may also be applied.
Repayment Plans - If a customer acknowledges the debt but is unable to pay in full, we will consider reasonable proposals for repayment by instalments. We will confirm any agreement in writing, setting out the repayment terms, the date of the first instalment, and any agreed interest.
- Failure to adhere to a repayment plan without explanation may result in escalation to legal proceedings or third-party recovery agents.
Use of Debt Collection Partners - After 30 days of non-payment and failure to respond to reminders or engage constructively, we may refer the debt to a professional collection agency.
- Any collection fees charged to us by the agency may be added to the customer’s balance.
- The agency will act in accordance with applicable regulations and will not use threatening or unreasonable methods to recover payment.
Debt Respite Scheme Compliance - Where we are notified of a Breathing Space Moratorium or Mental Health Crisis Moratorium under the Debt Respite Scheme (England and Wales) Regulations 2020, all debt collection activity relating to that debt will be suspended for the duration of the moratorium.
- This includes all contact with the customer, enforcement action and application of interest or fees. We will record the moratorium, communicate respectfully with any nominated debt adviser, and resume recovery steps only once it lawfully expires.
Court Action - If informal recovery efforts fail and the customer does not dispute the debt, we may initiate legal action in the County Court.
- Before doing so, we will issue a Letter of Claim compliant with the Pre-Action Protocol for Debt Claims where applicable. The letter will set out the amount owed, how it arose, and the customer’s right to respond or dispute. Customers will be given at least 30 days to reply before proceedings are issued.
- If judgment is obtained and remains unpaid, enforcement options may include a County Court Bailiff (Warrant of Control), Attachment of Earnings, or Third-Party Debt Order, depending on the debtor’s circumstances.
Disputed Debts and ADR - Where a debt is disputed, we will attempt to resolve the matter directly with the customer through open dialogue and provision of supporting documentation. If agreement cannot be reached, we may propose mediation or refer the matter to our agreed Alternative Dispute Resolution (ADR) provider.
- We may also initiate arbitration in accordance with our Master Terms of Business. We will not pursue court action while a dispute is actively being negotiated or subject to ADR, unless we are legally entitled to do so.
Record Keeping - We maintain accurate and secure records of all contracts, invoices, communications, reminders, and legal actions relating to outstanding debts.
- This enables clear audit trails and ensures we meet data protection obligations under UK GDPR and the Data Protection Act 2018.
- All personal data processed for debt recovery purposes is handled lawfully and proportionately.
Customer Support and Contact - We recognise that financial difficulties can arise unexpectedly. We encourage customers to contact us early if they are struggling to pay, so we can discuss flexible arrangements.
- You can contact our accounts team at [email protected] or call 01733 315065. We will deal with all queries fairly, confidentially, and without judgement.
