Interest on Debt after CCJ

tortmad · 3 September 2014 at 12:24PM

I had a CCJ against me a few years ago for a credit card, payments are being made to Marlin. I have made this payment of £10 per month for a number of years by direct debit.

Today I received a statement from Marlin and I was shocked!! They are charging me £38 a month interest, so the amout I owe is a lot more than the original debt. Is there anything I can do about this, it just seems wrong to me. I would love to be able to increase the payment but that is impossible at the moment.

[Deleted User] · 3 September 2014 at 2:21PM

I would certainly write and dispute this. Usually, guidelines state a creditor can claim interest on a debt but this is only up to when the judgement is made; sounds like the debt collection agency is being rather unscrupulous in adding interest after the judgement. You have to remember DCA's are basically legalised criminals and will do whatever they can to take money from a debtor; to them rules are for other people. Write and demand a breakdown of what you have paid against the original ccj debt, and state you will not be paying their added on interest, I bet they won't defend that in court.

Lensman_2 · 3 September 2014 at 6:15PM

You should go and get a copy of the judgement from the court. They are legally bound by the terms in that judgement.

In my experience only 8% simple interest can be applied and then only for 12 months - but don't bank on an internet poster.

Get the judgement and check it.

stevemLS · 3 September 2014 at 11:38PM

Lensman is right, you need a copy of the judgment.

If, however, the claimant applied for interest at 8% and it was granted, there is no 12 month limit - it continues until the judgment is satisfied (i.e. paid).

thewhiteavenger · 4 September 2014 at 6:48AM

This would infer the original debt was £5700.

At £10 per month it would take 47 years to clear (without interest).

I think you need advice - maybe try National Debtline. I wonder if you would qualify for a Debt Relief Order.

National_Debtline · 4 September 2014 at 10:12AM

Hi tortmad

Certainly sounds a bit iffy but to echo others, getting a copy of the judgment paperwork is key here.

In the meantime, recommended reading in the shape of our fact sheet on county court interest charges:

https://www.nationaldebtline.org/EW/factsheets/Pages/18%20EW%20County%20court%20-%20interest%20charges/Default.aspx#quicklink1

Regards

Dennis
Twitter: @natdebtline

Interest on Debt after CCJ

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