Post contractual interest on assigned debts

[FORCEOFONE]

Well then, after a resounding success on my last thread, i will now seek clarity on another debt collection topic

After a debt has been assigned to a new creditor, in this instance we will state that the new creditor is a debt agency.

Can the debt agency claim post contractual interest on an assigned agreement that has been terminated by the original creditor.

If it is an assigned live agreement that has not been terminated, then yes.
in this example the account has been terminated

I am of the opinion that the debt agency can only charge post termination contractual interest if it is in the terms and conditions of the original agreement

comments please

[gravytrain]

Re: Post contractual interest on assigned debts

Well then, after a resounding success on my last thread, i will now seek clarity on another debt collection topic

After a debt has been assigned to a new creditor, in this instance we will state that the new creditor is a debt agency.

Can the debt agency claim post contractual interest on an assigned agreement that has been terminated by the original creditor.

If it is an assigned live agreement that has not been terminated, then yes.
in this example the account has been terminated

I am of the opinion that the debt agency can only charge post termination contractual interest if it is in the terms and conditions of the original agreement

comments please

short one then, yes they can only charge post termination interest if there is a term in the contract, it usually says something like, and the debtor shall incur interest at the contractual rate for as long as a balance remains outstanding under this agreement.

Interestingly this clause would also go towards claiming post judgment interest, although that is another story.

[FORCEOFONE]

Re: Post contractual interest on assigned debts

The debt has been assigned, but also terminated by the original creditor

So all sums due will be up to termination, that is outstanding balance and interest up to termination

So how can more interest be charged post assignment as the contractual Agreement has been terminated

It is logical to deduce that all sums due under termination will be applicable.

Assignment of a live agreement is a total new area, but a terminated one

What about giving a notice of default sums as to the CCA 1974

SOME ACCOUNTS ARE ASSIGNED AND NOT ACTED UPON UNTILL A FEW YEARS LATER

[gravytrain]

Re: Post contractual interest on assigned debts

It is a mistake to consider that the termination of an agreement means that the agreement as ended, the agreement(contract) continues for as long as there are liabilities due under it.

A term on the contract can stipulate anything as long as both parties agree(and the statute is silent), including the continual application of interest at a contractual rate.(even after judgment)

[FORCEOFONE]

Re: Post contractual interest on assigned debts

Only a court or creditor can end an agreement

What about a creditor sitting on an account say for 2 years, it is not practicable to be able to claim the contractual interest for those two years as that will be judged as an unfair term and contrary to CPUTR 2008

I am looking for confirmation through statute again

Sorry to be a pain

[gravytrain]

Re: Post contractual interest on assigned debts

Only a court or creditor can end an agreement

Or the debtor of course by discharging the debt

What about a creditor sitting on an account say for 2 years, it is not practicable to be able to claim the contractual interest for those two years as that will be judged as an unfair term and contrary to CPUTR 2008

I am looking for confirmation through statute again

Sorry to be a pain

CPUTR would not be relevant, but you are right the court would probably consider it unfair to charge contractual interest over a prolonged period when the account had been terminated.
The court usually approves of section 69 interest under the county courts act set at 8% simple interest from the termination date. PT would be your man for this stuff he does it everyday.

[FORCEOFONE]

Re: Post contractual interest on assigned debts

No doubt he will take a look

I am starting to enjoy this forum now, well most of it, we all have our exceptions