adding interest

[golfillini]

Hello All,

I have an account with Santander which has been transferred to Moorcroft.

I was of the understanding that when a DCA has control of the account the original creditor cannot add interest onto the account.

I received a statement letter from Santander which shows interest has been added to the account.

My question is ; can they do this and if not how do i get it removed.

Regards

Golfillini

[Lord_Alcohol]

Re: adding interest

Hi Golfillini

I believe (not 100% certain) that contractual interest cannot be added to an account under an agreement that is terminated (the provision to charge contractual interest is ended).

But if the creditor is successful in claiming the balance in court, he can claim statutory interest on the balance from the date of termination to the date of judgement (and beyond, if not paid).

So if Santander terminated your agreement before passing to DCA, then contractual interest should not be added after the date of termination, as far as I am aware. However, if the agreement is not terminated, then they would be entitled to continue to charge it.

You would need to confirm that the agreement is terminated and whether contractual interest has been charged after the termination. You would then be within your rights to ask them to subtract the interest and the balance should be frozen until repaid (when statutory interest may be added) or settled.

HTH
LA

[Bill-K]

Re: adding interest

LA's comments make sense to me, too. FWIW, I would be inclined to get as much from the OC AND the DCA in writing about this. Play the innocent, and 'enquire politely.' It's surprising how much evidence these guys will pile up against themselves if you encourage them !!!

Give them all the rope they want !!!