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  • Writer's picturePaul

Is Debt Recovery Legal? Understanding Your Rights and Regulations

In the world of construction, managing finances effectively is crucial, but what happens when invoices go unpaid? This is where debt recovery comes into play. A common question many businesses face is, "Is debt recovery legal?" The answer is yes, and it's a practice governed by specific laws and regulations to ensure fairness and legality in the process. At Glenwood, we specialise in legal debt recovery methods, ensuring compliance with The Late Payment of Commercial Debts (Interest) Act 1998 and the Late Payment of Commercial Debt Regulations Act 2002.

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Understanding Legal Debt Recovery:

Debt recovery, when conducted legally, is a legitimate process of pursuing payments owed by customers or clients. It involves a series of actions taken by a creditor or a debt recovery agency to collect overdue funds. It's important to understand that this process is governed by strict laws and guidelines to protect both the creditor and the debtor.

Glenwood’s Compliance with Legal Frameworks:

At Glenwood, we adhere strictly to legal standards in our debt recovery process. Our practices align with:

  • The Late Payment of Commercial Debts (Interest) Act 1998: This act allows businesses to charge interest on late payments, which acts as a deterrent against delayed payments and compensates creditors for the inconvenience caused.

  • Late Payment of Commercial Debt Regulations Act 2002: This regulation further reinforces the rights of businesses to recover debts. It permits the addition of reasonable debt recovery costs to the debtor’s account, ensuring that businesses are not financially penalised for chasing overdue payments.

Applying Late Payment Interest and Debt Recovery Costs:

At Glenwood, we exercise our legal right to apply both late payment interest and debt recovery costs to the debtor’s account. This not only incentivises timely payments but also ensures that our clients do not bear the financial burden of the recovery process. We calculate these costs transparently and in accordance with the stipulated guidelines.

Why Legal Debt Recovery is Essential:

Legal debt recovery is not just about getting paid; it's about maintaining fairness and professionalism in business transactions. It ensures:

  • Financial Stability: Helps businesses maintain cash flow and financial health.

  • Business Relationships: Legal methods ensure that the relationships between businesses remain professional and intact.

  • Regulatory Compliance: Adhering to laws avoids any legal repercussions for both parties.



Debt recovery is indeed legal, and it's an essential tool for businesses to safeguard their financial interests. Glenwood’s adherence to legal frameworks like The Late Payment of Commercial Debts (Interest) Act 1998 and the Late Payment of Commercial Debt Regulations Act 2002 ensures that our debt recovery services are not only effective but also fair and compliant with the law. By choosing Glenwood, businesses can rest assured that their debt recovery process is in safe and legal hands.

Contact Us:

For more information on how we can assist with your debt recovery needs legally and effectively, please feel free to contact us at Glenwood. Our team of experts is here to provide you with the support and guidance you need.




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Head Office - Glasgow

First Floor, 9000 Academy Business Park, Gower Street, Glasgow, G51 1PR

Leeds Office

No 2 Wellington Place, Leeds, West Yorkshire, LS1 4AP

Dublin Office

Ormond Building, 31-36 Ormond Quay Upper, Dublin 7D07 N5YH

Call us: 0141 465 9016

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