Settlement figure - interest claimed

[JDSD]

Hi to everybody,

Perhaps I'm in the wrong forum, sorry if that's the case. Can somebody please tell me if discretionary interest can be claimed by a creditor without it being documented anywhere or judge upon?

Regards,

JDSD

[miliitant]

Re: Settlement figure - interest claimed

The answer is no

you only have contractual interest, not discretionaty

please elaborate

[JDSD]

Re: Settlement figure - interest claimed

Hi miliitant,

Thanks for getting back to me.

I have a settlement figure given to me by my creditor's solicitor that is far greater than that stated on the final charging order. I sent the following letter:


Dear Sirs,

I am writing in response to your letter dated 11 November 2012 regarding the redemption charge of £XXXXX in favour of your client Robinson Way & Co Limited. Firstly, would you please kindly provide a breakdown of the above figure showing the number of repayments made to date towards the reduction of the judgement debt and the calculation used to determine the amount of unsubstantiated statutory interest.

Secondly, I refer specifically to statutory interest that has been applied to the post county court judgment debt in 2009 and which I now believe to be wrong. The county court judgement did not allow for statutory interest to be added and as far as I am aware there is no provision in law for it to be added.

The original loan taken out in 2004 was subject to the Consumer Credit Act 1974 and this continued to apply at the time of default in 2008. Under the County Courts (Interest on Judgement Debts) Order 1991, any agreement subject to the CCA 1974 would not accrue any statutory interest post judgement.

Please refer this matter to your legal and/or compliance manager, so a proper response may be provided. I am expecting any statutory interest added post judgement to be removed or a proper legal explanation as to why you consider the above argument to be incorrect.

You will be aware that I consider the debt to be in dispute as a substantial amount of this sum is made up of disputed charges and interest charged thereon.

I await hearing from you.


I also spoke to their solicitors and they said that they were allowed to add interest and that it did not have to be documented on any court paper.

Here's what I recieved back regarding their claim to interest:

[miliitant]

Re: Settlement figure - interest claimed

the interest issue is decided on what the original ccj judgement stated

does the original judgement state post ccj interest is payable

what interest are they charging 8% or contractual as to the original agreement


do you have a copy of the original ccj judgement from the court prior to the charging order application

[JDSD]

Re: Settlement figure - interest claimed

I have the claim form and the judgment for claimant.

[miliitant]

Re: Settlement figure - interest claimed

you mention a charging order so i take it the debt agency obtained this, what was the original debt for, credit card, loan, etc

If the Claimant requested section 69 INTEREST (DID THEY)
within their Particulars of claim on a claim over 5K then they are entitled to add 8 % up and until judgment.

not post judgement

The summons would be vital to check the wording of the claim.if there is no reference to statutory interest then it can not be added to the claim.

forgot to mention

does the original credit agreement have a clause in the t&c ABOUT CLAIMING POST CONTRACTUAL INTEREST AFTER JUDGEMENT

[JDSD]

Re: Settlement figure - interest claimed

I have this claim form:

[miliitant]

Re: Settlement figure - interest claimed

They cant claim post judgement interest, you are being led up the garden path

can you post up the judgement notice from the court as well

to put the final nail in this

have you looked at the original credit or loan agreement to see if post judgement interest can be claimed in the t&c

[JDSD]

Re: Settlement figure - interest claimed

Here are the ToCs:

The scary bit out of it all is...

"If you are late paying the whole or part of any instalment you will pay us, if we so require, interest on the instalment from when it was due until when it is paid, at the rate of the APR shown. This applies before any judgement against you and afterwards if the judgement allows you to pay what you owe in instalments and states that this agreement should not be changed because of the judgement."

[miliitant]

Re: Settlement figure - interest claimed

the point i am making that even if the t&c allow post contractual judgement interest, it should be in the claimants particulars of claim and in the judgement for the claimant.
i would think spending £80 to see a solicitor for half an hour would be well spent

Note: As per the County Courts (Interest on Judgment Debts) Order 1991, statutory interest does not accrue on a debt that has been the subject of a CCJ if:

• the debt is for an agreement regulated by the Consumer Credit Act. This includes most ordinary credit agreements, including bank overdrafts; or
• the debt is less than £5,000 in total, even if it is not covered by the Consumer Credit Act.

As such generally speaking if you have received a CCJ for a debt which is covered by the consumer credit act such as a personal loan , credit or store card, a creditor can not add statutory interest after a CCJ has been issued.

[miliitant]

Re: Settlement figure - interest claimed

I would suggest writing to them as follows.

I am writing in regard to statutory interest which robinson way has been applying post judgement since 2009 and which I now believe to be wrong. The court judgement did not allow for statutory interest to be added and as far as I am aware there is no provision in law for it to be added.

The original loan taken out in in 19XX was subject to the Consumer Credit Act 1974 and this continued to apply at the time of judgement in 2009. Under the County Courts (Interest on Judgement Debts) Order 1991, any agreement subject to the CCA 1974 would not acrue any statutory interest post judgement.

As such generally speaking if a debtor receives a CCJ for a debt which is covered by the consumer credit act such as a personal loan , credit or store card, a creditor can not add statutory interest after a CCJ has been issued

please explain by return correspondents if my reasoning is incorrect and why it is incorrect

please advise or i will have no choice but to apply to the court for a redetermination order to settle this matter with an application for costs

[Bill-K]

Re: Settlement figure - interest claimed

I do a lot of interest calculations for PPI & other charges reclaims, and I have always applied the 8% Statutory interest up until the date of settlement - as opposed to the date of judgement, and I haven't received any objections to this. I have taken s.4 (1) to apply:

4.—(1) Where a judgment creditor takes proceedings in a county court to enforce payment under a relevant judgment, the judgment debt shall cease to carry interest thereafter, except where those proceedings fail to produce any payment from the debtor in which case interest shall accrue as if those proceedings had never been taken.

[My emphasis] What exactly constitutes the 'failure to produce any payment' is unclear, though, and I'm no lawyer - just a bit of a maths geek.

Could this apply here, Mil ? Not that I want it to, in this case, you understand !!!

[miliitant]

Re: Settlement figure - interest claimed

i would conclude that if a repayment plan has been set by the court or claimant post ccj, and the defendant fails to honour that repayment plan, then interest at 8% can be added to those missed repayments

thats my interpretation on it but unsure

[Bill-K]

Re: Settlement figure - interest claimed

Thanks Mil - it is a bit vague, innit ?

[miliitant]

Re: Settlement figure - interest claimed

to be honest i have never come accross that one before