PPL under fire over late payment fee clampdown

PPL, the music royalties collection firm, has come under fire for alleged heavy-handed tactics in collecting late payment fees.

The company's approach has been thrown into the spotlight after a licensee was fined half the total of her bill for paying just over two weeks late - and told she could face jail if she challenged the fine.

The 50 per cent surcharge has been in place since last February, but the case serves as a major warning to other licensees who are late with their PPL fee payment.

The surcharge is also being challenged by the British Beer & Pub Association (BBPA).

Linda Buckley, of the Kings Head, in Llantwit Major, South Wales, was fined £63.58, after failing to renew her PPL licence in time.

She was sent a letter by a debt collection firm, employed by PPL, warning she was infringing copyright by missing the deadline for payment.

But during a phone call with the collection firm she was told she could face 15 months in prison if she failed to pay the fine and it went to court.

"I was absolutely horrified," she said. "It was just an oversight. We are a relatively small pub, but this would be a lot for bigger venues."

Dan Thomas, the pub's manager, said the extra charge was "outrageous". "We've never missed a payment in the 10 years or so we've been here and this is how we get treated," he said. He also claimed the reminder letter was received eight days after the renewal date.

But Jonathan Morrish, PPL's director of PR, said: "It is standard PPL business practice to send out a quote to existing customers 56 days prior to the renewal date followed by an invoice 28 days later.

"A reminder letter is then sent seven days before the renewal date if payment has not been received.

"PPL does all it can to resolve business issues amicably and quickly but as a last resort legal proceedings could be commenced which potentially could result in a fine or a prison sentence."

In November 2009, it was ruled that PPL had been overcharging pubs for a licence to play recorded music, following a long-running battle. As a result the company has been forced to pay back thousands of pounds in refunds to pubs.

Morrish said the Copyright Tribunal decided licence fees should include a surcharge in "certain circumstances".

But there is major industry opposition to the 50 per cent surcharge.

The BBPA argued against it at the Copyright Tribunal hearing and is still pursuing the issue. Martin Rawlings, the BBPA's director of pub & leisure, said: "We have expressed concerns about it (the surcharge) as we don't think it's right. This is not the way to promote music in pubs."

Meanwhile, licensees are being urged to apply for their refunds from PPL if they have yet to do so. For more information visit: www.beerandpub.com/