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Hi
I have 2 questions regarding interest payable on judgements.
Previously a creditor made a county court claim against me for a debt I had and was unable to service at that time. They were already charging 5% interest but in their claim they put this up to 8% under section 69 of the county court act 1984. The judgement was then made against me on this basis. However, I have now seen that section 69 states:
"Interest in respect of a debt shall not be awarded under this section for a period during which, for whatever reason, interest on the debt already runs."
The creditor did not disclose that interest was already being charged. Was it then legal for the rate to then be put to 8% at that time?
Secondly, interest is simple interest. However, at the time of judgement and then later upon a further order, the creditor has added all interest and fees to the principal sum effectively compounding the interest at these dates, so later interest calculations were made on the principal plus fees plus interest. This does not seem at all fair to me and I would like to know if it is legal for them to do it. I would think that all interest should be calculated simply and on the principal only.
Any advice on this matter would be appreciated. If I go back to court with these 2 arguments how will I fair?
Thanks
I have 2 questions regarding interest payable on judgements.
Previously a creditor made a county court claim against me for a debt I had and was unable to service at that time. They were already charging 5% interest but in their claim they put this up to 8% under section 69 of the county court act 1984. The judgement was then made against me on this basis. However, I have now seen that section 69 states:
"Interest in respect of a debt shall not be awarded under this section for a period during which, for whatever reason, interest on the debt already runs."
The creditor did not disclose that interest was already being charged. Was it then legal for the rate to then be put to 8% at that time?
Secondly, interest is simple interest. However, at the time of judgement and then later upon a further order, the creditor has added all interest and fees to the principal sum effectively compounding the interest at these dates, so later interest calculations were made on the principal plus fees plus interest. This does not seem at all fair to me and I would like to know if it is legal for them to do it. I would think that all interest should be calculated simply and on the principal only.
Any advice on this matter would be appreciated. If I go back to court with these 2 arguments how will I fair?
Thanks
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