Which legislation governs the claiming of interest for late payments of commercial debt?

The Late Payment of Commercial Debts (Interest) Act 1998 is the correct legislation governing the claiming of interest for late payments of commercial debt. This specific Act was designed to address the issue of delayed payments in business transactions, allowing creditors to charge interest on overdue payments, thus providing a financial incentive for debtors to pay on time.

The Act sets out the statutory right to claim interest and specifies the rate that can be charged on late payments, which can significantly benefit businesses that rely on timely payments to maintain cash flow. It also outlines the circumstances under which interest can be claimed, enhancing the protection of creditors in commercial agreements.

The other options, while related to commercial practices and payments, do not specifically pertain to the claiming of interest for late payments in the same way as this Act does. For example, the Late Payment of Debts Act 2000 addresses different aspects of late payments in general, whereas the Commercial Litigation Act 2010 focuses on procedures related to litigation rather than payment practices. Similarly, the Business Payment Practices Act 2015 deals with payment transparency and reporting rather than directly enabling the claiming of interest on overdue debts.