Can I Add Interest to Debt Owed?

Approximately three months ago my daughter sold her car. She is still owed over one third of the money, and we are looking at trying to recover this through the small claims court.

1. Can we add interest to the amount owed from the date of sale?

2. If so, at what %age?

3. Is there a calculator anywhere so it can be worked out easily?

4. In order to commence proceedings do we just go through MCOL, or do we have to do something else first?

Any help would be appreciated. I don't do court and my daughter is significantly out of pocket.

[righty]

Re: Can I Add Interest to Debt Owed?

If you didn't agree to added interest at the time of sale then no you cannot You will however be able to add court interest of 8% when your granted a judgement

[Wombats]

Re: Can I Add Interest to Debt Owed?

If you didn't agree to added interest at the time of sale then no you cannot You will however be able to add court interest of 8% when your granted a judgement

Thank you. So......

1. Is it just a case of going htrough MCOL now?

2. Once interest is added, can this be taken into account when thinking about instructing a HCEO (over £600) or would the original debt have to be over £600?

[righty]

Re: Can I Add Interest to Debt Owed?

Also before making your application you MUST send an LBA (letter before action) giving the buyer at least 14 days to rectify his none payment. Add the comment that if they don't comply within the time you will issue proceeding without further notice AND head your letter with the words LETTER BEFORE ACTION

If they ask for say a further week then its advisable to grant their request as it shows the court you are being reasonable

[righty]

Re: Can I Add Interest to Debt Owed?

Thank you. So......

1. Is it just a case of going htrough MCOL now?

2. Once interest is added, can this be taken into account when thinking about instructing a HCEO (over £600) or would the original debt have to be over £600?

% would only apply after judgement

[Wombats]

Re: Can I Add Interest to Debt Owed?

Thanks Righty. So once debt is over £600 with interest we could instruct HCEO's?

This is critical as it's someone with plenty of goods willfully refusing to give my daughter the money now he has the car.

[righty]

Re: Can I Add Interest to Debt Owed?

Do you have any spare keys?

[righty]

Re: Can I Add Interest to Debt Owed?

AND what's his excuse for not paying AND I have to ask why did she give him the car prior to payment. Did she hand over the V5 reg doc

[Wombats]

Re: Can I Add Interest to Debt Owed?

Annoyingly not. It was someone known to my wife's family for 30 odd years who has let my daughter down badly. He thinks he can walk all over a 17 year old; I want to show him he is accountable for that decision.

[Wombats]

Re: Can I Add Interest to Debt Owed?

AND what's his excuse for not paying AND I have to ask why did she give him the car prior to payment. Did she hand over the V5 reg doc

I think the reason is explained above - family known him since birth. The V5 is in his possession and he said he had the money - there was no reason to doubt him. He paid two installments then has stopped paying, but worse, stopped communicating at all, so we have been unable to negotiate anything amicably. At some stage you have to say enough is enough.

[righty]

Re: Can I Add Interest to Debt Owed?

Cannot you wife or a member of her family have a word with this guy & try to make him see sense before it all goes legal and he has to met those legal costs as well

[Wombats]

Re: Can I Add Interest to Debt Owed?

We've done this three times. Each times he's made an agreement to repay. Each time I've asked if he's sure he can afford it and isn't overstretching himself and to come and see us if there are any problems or difficulties. Each time he's left promising to pay then done nothing until we next almost literally 'catch' him somewhere where he can't escape us.

It is a horrible situation, but after three attempts and extra time etc... before that, let alone the initial lie he had the money, I feel we've done all we can. My wife hates any conflict and thinks he will pay, but there is no sign whatsoever of him doing so, and every sign of him actively avoiding us.

[righty]

Re: Can I Add Interest to Debt Owed?

Then your only choice seems to be making a money claim & don't forget to include in the statement all the times you have given him an opportunity to pay & that he's agreed only to let you down time and again

[righty]

Re: Can I Add Interest to Debt Owed?

From the sounds of it I would suggest he's taking advantage of his connecting with your wives family and doesn't think you'll do anything not least sue him

[Wombats]

Re: Can I Add Interest to Debt Owed?

From the sounds of it I would suggest he's taking advantage of his connecting with your wives family and doesn't think you'll do anything not least sue him

I agree, though he should know better. He's great friends with my stepson who I've had arrested and prosecuted via the police (I get on brilliantly with him since doing that!), so he knows I will do it. I hope sincerely the LBA is sufficient for him to at least come and see us to agree something sensible.

For me it's more the fact he's taking advantage of a 17 year old girl who he knows. We'll not see our daughter go short of the money, but then why should we?

Fingers crossed for the LBA. I'll look up the CPR's to see what has to be included unless anyone has a handy link to one?

Thanks Righty for all your help.