When an account is described as overdue, it means the due date shown on the original invoice or agreement has passed without payment being received. The debt itself has not changed — it is the same amount that was agreed — but it has now gone past the point where it was due.
Here are the terms you may see on your notice or in our correspondence:
- Principal — the original amount owed, as recorded on the invoice or agreement. This is the base figure before any interest or charges are added.
- Interest — additional charges applied when an invoice is not paid by its due date. Interest must be authorised by the original contract or terms of trade before it can be charged.
- Recovery costs — in some cases, debt recovery costs can be passed to the debtor if the original terms of trade clearly provide for it.
- Outstanding balance or total owing — the current total due, which may include principal plus any interest or costs that have accrued.
If you believe any component of the amount shown is incorrect — for example, if interest has been added without a basis in your contract — you can raise a dispute. See the article on what to do if the amount is wrong, or use the Dispute a Debt form.
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