2023-08-16 23:00:16
Entrepreneurs have only two weeks left to adapt the contractual conditions to the new legislation on overdue invoices.
Earlier this year, the Chamber gave the green light to new regulations aimed at better protecting consumers when they pay a bill late. In concrete terms, the new legislation aims toprohibit unreasonable penalties and overly aggressive approaches by collection agencies.
The new regulations aim to prevent consumers from falling into a negative spiral of over-indebtedness by being charged late payment interest and very high collection costs.
Until now, people who are late in paying a bill often receive a reminder letter with additional charges. But, from September, companies will no longer be able to charge for the first reminder letter. From now on, customers who receive such a letter will have 14 days to pay their dues. Late payment interest or costs may only be charged to them if they do not pay within the aforementioned period. Fees are capped. For example, for an outstanding debt of 150 euros, the compensation can amount to a maximum of 20 euros. For an unpaid invoice of 1,000 euros, this ceiling is increased to 90 euros. The new regulations aim to prevent consumers from falling into a negative spiral of over-indebtedness by being charged late payment interest and very high collection costs.
Two deadlines
But the new legislation also entails extra work for companies. The new rules will apply to new contracts from September 1, with a transition period for existing contracts until December 1. These are also the two deadlines to which companies will have to have adapted the contractual clauses and the general conditions of sale accordingly for their customers.
Thus, companies which currently provide in their general conditions for a penalty for unpaid invoice from the first reminder must update them in their contracts without delay. The same applies to information on default interest and certain other points related to the policy for recovering unpaid debts.
“Many business leaders are still too unaware of what the new rules mean for them and what they might mean for their customers.”
More few entrepreneurs are still aware of this new obligation, note the lawyers. “Big companies often have a legal department that deals with it, but small businesses seem in no rush to adapt“, emphasizes Arne Parmentier, of the firm PC Advocaten. “Many business leaders are still too little aware of what the new rules mean for them and what they might mean for their customers.
“It is almost certain, indeed, that everyone is not ready yet”, confirms Gerrit Budts, spokesman for the organization of independents Unizo. “The transition period to adapt to the new legislation was extremely short (four months). In addition, September 1 is just following the holiday period.” And the government has hardly communicated on the new legislation, deplores Unizo. “As if the small entrepreneur was also a lawyer”, quips the employers’ federation.
However, companies would be well advised to proceed without delay with all these administrative adaptations. “Failing this, companies will not be able to demand late payment interest or take other recovery steps.“, warns the organization of independents. Companies even risk controls and sanctions from the economic inspection.
“Some customers are now telling me that they will delay customer billing until they change the terms.”
“If the contractual conditions are not modified, a company will not be able to invoice or pass on the collection costs to customers who do not pay or pay late”, confirms the lawyer Parmentier. “Previously, a justice of the peace might decide that clients still had to pay these costs,” continues the lawyer. “But if the terms of the contract have not been modified, the legal basis disappears since companies are required to clearly indicate to their customers in advance what they are exposing themselves to if they do not pay. Some clients I explain the situation to now tell me that they will delay billing clients until they have changed the terms.”
The hunt for unpaid invoices is already costing Belgian businesses a lot of time and money, as a report by collection company Intrum revealed earlier this year. According to Intrum, Belgian companies spend an average of 69 days per year recovering the amounts of their unpaid invoices.
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