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Prompt Payments Act

  • 13-03-2007 11:32pm
    #1
    boomer_ie
    Closed Accounts Posts: 392 ✭✭


    Does anyone know how this is applied?

    From what I read there is a set interest rate applied daily which is set by the ECB, but by my calculations using an interest rate of 4.5% daily as per the Prompt Payments Act recults in an interest bill of €4,859.25, which seems a little high to me (based on an amound owed of €12540 over 31 days


Comments

  • #2
    pigeonbutler
    Registered Users, Registered Users 2 Posts: 666 ✭✭✭pigeonbutler


    Not entirely familiar with that act or the context. But if late payments to revenue commissioners are anything to go by it would be 4.5% per annum compounded and applied daily. So 4.5%/365 per day, compounded.


  • #3
    boomer_ie
    Closed Accounts Posts: 392 ✭✭boomer_ie


    pigeonbutler wrote:
    Not entirely familiar with that act or the context. But if late payments to revenue commissioners are anything to go by it would be 4.5% per annum compounded and applied daily. So 4.5%/365 per day, compounded.

    That sounds more like it, leads to an interest charge of €137.51 (€4.29 per day) hardly seems worth it....


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