Statutory interest and contractual interest in monetary claims

If your counterparty does not pay what it owes, it often owes interest in addition to the principal amount. This can be the so-called legal interest, commercial interest or contractual interest. The differences are explained below.

Determining amount of statutory and commercial interest

Statutory interest and commercial interest are reset every six months by Royal Decree. It can therefore be complicated to determine the correct interest rate on a monetary claim. In addition, it is often not immediately clear which interest rate should be charged. 

Statutory interest for payment default

The law states that if you fall short of the fulfilling your obligations, that you then compensation owed. If it is a violation of the obligation to pay a sum of money, that compensation consists of statutory interest. That statutory interest is due for the period that the debtor is in absence is. Statutory interest is also due on that interest. The legal interest rate applies to all contracts with individuals or consumers, among others.

Commercial interest in case of a commercial contract

If there is a commercial contract, then a higher interest rate applies. That is the so-called legal commercial interest. The Court of Justice of the European Union has ruled that a commercial agreement exists if it is a transaction between companies or between companies and public authorities, which consists of supplying goods or providing services for consideration.

Contractual interest

The statutory system can be deviated from by agreement. In contracts with consumers or private individuals, however, care must be taken with this: an interest clause in the terms and conditions can , unreasonably onerous are. Agreements often refer to penalty interest as well. Lenders usually use the legal interest rate, with a surcharge on top. 

Collection costs

When collecting money receivables, in addition to the principal and interest due, are often collection costs owed. To do so, however, a number of conditions must be met. Read about that this item.

Debt collection money claim: make sure the calculation is correct

Collecting a monetary claim often involves costs. Especially if legal proceedings must be initiated. The legal costs can add up quickly. Therefore, it is important to get proper advice on the various costs that can be charged to the other party. Because in addition to the interest and collection costs, also the incurred attorney fees partially eligible for reimbursement.