What does flat rate mean?

ยง 288
Default interest and other default damage

(1) 1A pecuniary debt is subject to interest during the delay. The default interest rate for the year is five percentage points above the base rate.

(2) In legal transactions in which a consumer is not involved, the interest rate for payment claims is nine percentage points above the base rate.

(3) The obligee can demand higher interest for another legal reason.

(4) The assertion of further damage is not excluded.

(5) 1If the debtor is in default, if the debtor is not a consumer, the creditor of a claim for payment is also entitled to a lump sum payment of 40 euros. This also applies if the payment claim is an advance payment or other payment in installments. 3The flat rate according to sentence 1 is to be offset against any owed damages, insofar as the damage is based on the costs of legal proceedings.

(6) 1An agreement made in advance which excludes the claim of the obligee of a claim for default interest is ineffective. The same applies to an agreement that limits this claim or excludes or limits the claim of the obligee of a claim for payment to the lump sum according to paragraph 5 or to compensation for the damage that is based on the costs of legal prosecution, if it is in view of the obligee's interests is grossly unfair. 3An agreement on the exclusion of the flat rate according to paragraph 5 or the compensation of the damage, which is justified in the costs of legal prosecution, is to be regarded as grossly unfair in case of doubt. 4Sentences 1 to 3 do not apply if the claim is directed against a consumer.

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Official notice:

This provision also serves in part to implement Directive 2000/35 / EC of the European Parliament and of the Council of 29 June 2000 on combating late payments in business transactions (OJ EC No. L 200 p. 35).

Version based on the law to combat late payment in business transactions and to amend the Renewable Energy Sources Act of July 22, 2014 (Federal Law Gazette I p. 1218), which came into force on July 29, 2014 Explanation of the law is available

Previous legislative versions

Change overview
Come into effectAmending lawExecutionReference
29.07.2014 Law to combat late payment in business transactions and to amend the Renewable Energy Sources Act22.07.2014Federal Law Gazette I p. 1218
01.01.2002Law to modernize the law of obligations26.11.2001Federal Law Gazette I p. 3138