CP1241 – Clarification of Interest payments by Non-Paying BSC Debtors
Formal title: Clarification of Interest payments by Non-Paying BSC Debtors
Current Status
Summary
The current practice for charging interest to Non-Paying BSC Debtors is not as set out in the Code (N 9. 4). Modification P214 resolves this issue by deleting the current N9. 4. 1(a). However, the actual practice for charging interest to both the Non-Paying BSC Debtor and other Parties remains undefined. CP1241 proposes that the FAA Service Description is updated to include a statement describing the actual FAA practice for charging interest to Non-Paying BSC Debtors.
Progression
CP1241 was raised on 29 February 2008. CP1241 was issued for Industry Impact Assessment on 11 April 2008. CP1241 was presented to the ISG on 27 May 2008 for a decision on progression. The ISG approved an updated CP1241(v2. 0) for inclusion in the November 2008 Release. CP1241 v2. 0 was drafted following discussions with the FAA which highlighted that the first and second bullets of CP1241 v1. 0 were already covered by the current live version of the FAA SD and so it will not be necessary to add these points to the FAA SD. These bullets have been removed from CP1141 v2. 0 for clarity. CP1241 has also been updated to clarify that the interest charged (at the Default Interest Rate) is calculated from the due date (for the Amount in Default) up to but not including the date when the Default Share Amount is paid. Again this change is for clarity only and will ensure consistency with the redline FAA Service Description when it is issued for review.