Late Payers To Be Thrown To The High Courts

8th February 2018.

It has been reported that business groups, such as the Confederation of British Industry (CBI), will now have the power to bring a later payer to court- on behalf of its members- if the debtor refuses to pay.

Drawn up in wake of the Carillion scandal, and the reveal that many suppliers were forced to wait up to 120 days for payment, the new legislation will let trade bodies seek injunctions for contractors who are paid late. The collapse of Carillion last month has put thousands of small businesses at risk and highlighted the issue of late payment. Small business commissioner, Paul Uppal, previously threatened legislation as a solution for late payment, and it may be the most efficient way of scaring big companies into paying on time.

Here at the Credit Protection Association, many of our members are victims of late payment. For some business owners, their payment terms have been altered from 5 months to 5 years, and have been afforded little relief. While many of our debtors pay within a few days of receiving the first CPA letter, some ignore everything until legal intervention is threatened. For some, County Court isn’t threatening enough, and the ensuing fight is exhausting for the debtor as well as our member. This new legislation should hopefully relieve some of the pressure, and encourage firms to pay without the need of a judge.

This new legislation will allow the contractor their day in court, without actually having to be there.

Their representative group such as CBI,  will attend court on behalf of the contractor, preventing any intimidation by big companies.

The collapse of construction giant, Carillion, has stirred up many emotions surrounding late payment. Small businesses still suffer by its hand, and big businesses like Interserve continue to afflict it.

Rachel Reeves, who chairs the Commons business committee, accused Carillion of “ruthlessly exploiting its position to bully contractors”.

The government estimates that the economy would get a £2.5 billion boost if contractors were paid on time. The new regulations will come into force at the end of the month.

Since Carillion collapsed, small companies have garnered a lot of rage and sympathy from the public. Accusations of corporate bullying have been rife, as many small companies feel too intimidated to challenge big companies themselves. This new regulation will hopefully give small businesses back their voice.

Here at the Credit Protection Association, many of our small business members allow fears to overtake common sense, and unpaid invoices are left to pile up. Our role in the lives of many of our members is to guide them into a more safe and secure financial future. While this is easy for many, for some, the debtors are just a bit too arrogant, or a bit too sneaky, and getting our members back what they are owed, is not so simple. Bringing these late payers, non-payers and bad payers before a High Court will allow our members to feel powerful, while also warning others of the consequences.

We must recommend business owners come to CPA first before attempting the courts, as we will resolve your case quickly and efficiently and without additional fees. Of course, if your debtor proves to be slippery we will recommend the appropriate next step.

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

CPA on Linkedin

CPA on facebook

CPA on twitter

See all our latest news here!

Sign up here to our newsletter to receive periodic links to our best stories and blogs

Keep up to date with the latest news by following us on social media:-


Watch the video to find out how CPA can help you!

How to overcome 25 of the most common excuses for non-payment

Click the image to discover step by step advice on how to deal with them!






Discover how to improve your cashflow in 3 steps.

Click the image to find our answer to the question “How can you get paid on time?”





Read our blog – Debt collection agency

Read our Cash Flow Advice

Read about our overdue account recovery service

Read our blog – What is credit management?

Read our blog -What is a credit management company?

Read our blog -Credit Management that works!

Read our blog – How to select a debt collection agency

click to see read about our successes

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.

I consent to supplying my personal information that may be used for marketing purposes and agree with the privacy policy.


Saving More Could Reduce Debt Pile

Previous Post

How Managing Your Cash Flow Can Make You (and Your Business) A Success

Next Post

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.
Call us today

0330 053 9263