Distributed to

All RSLs in England with a repayment or loan account (excluding co-ownership socities)

Summary

Advises RSLs of a change to interest charging on overdue invoices. This circular replaces HC25/92

1. Introduction

Since October 1992, The Corporation has charged Registered Social Landlords interest if settlement of certain debts has not been received at the Corporation's Headquarters within 5 working days before the end of the month following that in which the invoice was raised.

2. Change from 1 February 2000

From 1 February 2000 interest will be charged if settlement of the debt has not been received at the Corporation's Headquarters within 30 calender days from the date at which the invoice was raised. Interest will accrue from the 31st day after the invoice date.

3. Types of Transaction Affected

Interest charges on overdue invoices applies to the following types of debt:

4. Interest Rates

The monthly rate of interest applicable is published in the Corporation's circulars on lending rates.

5. Minimum Charge

Interest charges of less than £10 per overdue invoice will be waived.

6. Queries on Debts

Registered Social Landords with queries on amounts invoiced should contact the Corporation's regional office. For queries on amounts invoiced for interest accrued the Corporation's Finance Division should be contacted. Wherever possible Registered Social Landlords are advised to pay any part of the invoice which is not under dispute as this will reduce any potential interest liabilty.

Enquires about this circular should go to Finance Division, The Housing Corporation, 149 Tottenham Court Road, London W1P OBN. Telephone 020 7393 2205