CCJ - is further interest still accruing?

[n20998]

Hi, following my thread here http://legalbeagles.info/forums/show...m-rent-arrears I'm looking for further advice please. The last time I asked for advice I was told the thread was long and confusing so I hope it's ok that I start another.To finish off that thread, I received a further suspended attachment of earnings order for £100 per month repayments.

My question now is surrounding interest as I received a letter from the claimant's solicitor advising of the repayments to be made and stating the interest owed and accruing. I've had a look around and it seems to be a cloudy area, so I am hoping for some clarity. I'll try to give as much information as possible...

1. Debt is for rent arrears. In the tenancy agreement, the clause pertaining to interest reads "If you owe rent or any other money legally payable to us under the agreement, you will have to pay interest on this amount from the date that it should have been paid. The interest rate is 3% above the base rate used by the Royal Bank of Scotland. This rate may apply before, as well as after, a court judgement has been made against you, depending on the terms of the court judgement'.
2. The claimant originally tried to claim 8% interest when getting the CCJ. I defended this with the help of Dan from this site.
3. The judgement is a judgement by determination. It states, "The claimant has objected to the rate of payment you offered. The court has therefore decided the rate at which you should pay. You must pay the claimant £4,569.32 for debt (and interest to date of judgement) and £340.00 for costs. You must pay the claimant the total of £4,909.32 by instalments of £100.00 per month, the first payment to reach the claimant by 15 June 2015 and on or before this date each month until the debt has been paid.
4. On the bottom left of the judgement, in the box 'Note to claimant and defendant' it says 'If judgement is for £5,000 or more, or is in respect of a debt which attracts contractual or statutory interest for late payment, the claimant may be entitled to further interest'.
5. I did not make the payments. The claimant made an application for an attachment of earnings order (using the incorrect address, I believe intentionally so I wouldn't get the information) and was awarded a suspended attachment of earnings order for £170 per month.
6. I disagreed with this amount, and received a further suspended attachment of earnings order for 100 per month. The amount is £5,064.32 - I think the extra £155 is the cost of the attachment of earnings order.
7. The suspended attachment of earnings order says in the first paragraph '...deduct £100.00 per month from the judgement debtor's earnings and send it to the court until £5,064.32, the amount payable under the judgement or order, together with any interest (where judgement is for more than £5000 or includes a sum in respect or contractual or late payment, the judgement creditor may be entitled to further interest) has been paid...". In the next paragraph it explains that the order is suspended.
8. The letter I received from the claimant's solicitor states that 'The value of the arrears was £4,569.32 plus interest at 3.5% which was £107.42 by xx/xx/xxxx and accrusing at a daily rate of £0.44. 331 days have since passed, so the interest is now at £253.06. The costs of £440 are to be added, being the court and legal fees as ordered'. It then gives a calculation then states 'Interest continues to accrue at a daily rate on any outstanding amount. Towards the end of the payment term a review of the interest can be carried out'.

So, what do you think? Is this correct? Point 1. makes me think that it might be, but then it wasn't explicitly stated in the CCJ.

Any help on this would be very much appreciated - they have already tried to cheat me by attempting to get 8% interest and given their other actions I wouldn't put it past them to be trying it on again.

[nemesis45]

Re: CCJ - is further interest still accruing?

Hi, following my thread here http://legalbeagles.info/forums/show...m-rent-arrears I'm looking for further advice please. The last time I asked for advice I was told the thread was long and confusing so I hope it's ok that I start another.To finish off that thread, I received a further suspended attachment of earnings order for £100 per month repayments.

My question now is surrounding interest as I received a letter from the claimant's solicitor advising of the repayments to be made and stating the interest owed and accruing. I've had a look around and it seems to be a cloudy area, so I am hoping for some clarity. I'll try to give as much information as possible...

1. Debt is for rent arrears. In the tenancy agreement, the clause pertaining to interest reads "If you owe rent or any other money legally payable to us under the agreement, you will have to pay interest on this amount from the date that it should have been paid. The interest rate is 3% above the base rate used by the Royal Bank of Scotland. This rate may apply before, as well as after, a court judgement has been made against you, depending on the terms of the court judgement'. Quite a standard term.
2. The claimant originally tried to claim 8% interest when getting the CCJ. I defended this with the help of Dan from this site.
3. The judgement is a judgement by determination. It states, "The claimant has objected to the rate of payment you offered. The court has therefore decided the rate at which you should pay. You must pay the claimant £4,569.32 for debt (and interest to date of judgement) and £340.00 for costs. You must pay the claimant the total of £4,909.32 by instalments of £100.00 per month, the first payment to reach the claimant by 15 June 2015 and on or before this date each month until the debt has been paid.
4. On the bottom left of the judgement, in the box 'Note to claimant and defendant' it says 'If judgement is for £5,000 or more, or is in respect of a debt which attracts contractual or statutory interest for late payment, the claimant may be entitled to further interest'.
5. I did not make the payments. The claimant made an application for an attachment of earnings order (using the incorrect address, I believe intentionally so I wouldn't get the information) and was awarded a suspended attachment of earnings order for £170 per month.
6. I disagreed with this amount, and received a further suspended attachment of earnings order for 100 per month. The amount is £5,064.32 - I think the extra £155 is the cost of the attachment of earnings order.
7. The suspended attachment of earnings order says in the first paragraph '...deduct £100.00 per month from the judgement debtor's earnings and send it to the court until £5,064.32, the amount payable under the judgement or order, together with any interest (where judgement is for more than £5000 or includes a sum in respect or contractual or late payment, the judgement creditor may be entitled to further interest) has been paid...". In the next paragraph it explains that the order is suspended.
8. The letter I received from the claimant's solicitor states that 'The value of the arrears was £4,569.32 plus interest at 3.5% which was £107.42 by xx/xx/xxxx and accrusing at a daily rate of £0.44. 331 days have since passed, so the interest is now at £253.06. The costs of £440 are to be added, being the court and legal fees as ordered'. It then gives a calculation then states 'Interest continues to accrue at a daily rate on any outstanding amount. Towards the end of the payment term a review of the interest can be carried out'.

So, what do you think? Is this correct? Point 1. makes me think that it might be, but then it wasn't explicitly stated in the CCJ.

Any help on this would be very much appreciated - they have already tried to cheat me by attempting to get 8% interest and given their other actions I wouldn't put it past them to be trying it on again.

The County Court rate is 8% btw.

There is not I think a question simply right or wrong. It is the order of the court. A judgement which has been clearly and carefully set down.

Continued failure to comply with the courts orders could generate further costs and or sanction from the court.

nem

[n20998]

Re: CCJ - is further interest still accruing?

Hi nem,

Thanks for getting back to me. I'm not quite sure what you're saying though? I have no problem with the suspended attachment of earnings order that I now have, I just don't know if this interest is correct.

[nemesis45]

Re: CCJ - is further interest still accruing?

Hi nem,

Thanks for getting back to me. I'm not quite sure what you're saying though? I have no problem with the suspended attachment of earnings order that I now have, I just don't know if this interest is correct.

IT appears to be correct throughout.!

nem

[n20998]

Re: CCJ - is further interest still accruing?

OK, from reading around I though the interest had to be stated in the order when the repayment is by instalments.

[nemesis45]

Re: CCJ - is further interest still accruing?

OK, from reading around I though the interest had to be stated in the order when the repayment is by instalments.

It's all been incorporated into the judgement and the solicitor has extrapolated and calculated what it to be paid.

nem

[n20998]

Re: CCJ - is further interest still accruing?

OK, how does the interest calculation work? As I make the payments and the balance reduces, does that daily rate reduce? So it would change every month? Or is it £0.44 until the whole balance is paid off?

Thanks

[nemesis45]

Re: CCJ - is further interest still accruing?

OK, how does the interest calculation work? As I make the payments and the balance reduces, does that daily rate reduce? So it would change every month? Or is it £0.44 until the whole balance is paid off?

Thanks

Yes the rate stays the same.

[n20998]

Re: CCJ - is further interest still accruing?

OK thanks, that's shocking really, especially as it doesn't match the term in 1. or what they've stated in the letter in 8..