court made me pay £7000 interest for a £1500 loan

billybason

In 1997 or there about I got a kitchen from "the old english kitchen company" that went into liquidation in 98. I continued to pay the loan by direct debit until I was contacted by the liquidators to pay by book until further notice. The book ran out and when I contacted them back the number was no longer in use. I went to CAB and they said leave it until contacted. I did then a collection agency contacted me, are you sitting down, well they wanted £11500 for non payment and interest on the loan, orinaly £3700 but I payed £2200 of it already. I was taken to court and they won, it became attached to my home. It made sell my home in 2002 and they settled with my solicitors for £8500. I felt sick to say the least. What I am asking is can I get this money back. I can get access to whom I payed via the solicitors I used and the county court who I lost the case AT. I have seen things in the paper "Liverpol echo 13/11/08 East claims" but not sure :-P. Help?

dmg24

Firstly, bad advice from CAB. Even if you were having trouble meeting the repayments, you should have found a way to contact the company and rearrange your payment schedule.

Can you give us a breakdown of the relevant figures, and how long you did not pay anything for?

anniecave

definately bad advice from cab - it's really easy to attempt to contact the liquidators of a company - their name and address is on companies house for a start.

did they use the correct figures on the court judgement? Had they definately included your payments? I cannot see how they have managed to get the interest up to that much?

anniecave

I've just checked on companies house though and can't find any company that might be the right one - which is a bit strange

I'm not sure if companies house archive records though as it's possible the original company went under and was wound up before 2002 which would be more than six years ago

billybason

It had wound up quickly, it occured in the late 90s 98/99 maybe. As for contacting the liquidators I did and they were great, as I said it was CAB who advised us when the book ran out. The First court hearing we had was frightening as the solicitor I used failed to turn up and they wiped the floor with me as I protested everything they said, but the court found it in there favour and it was then we decided to sell up and pay the debt off. We then turned to another solicitor who helped us sell the property and he got the original £11.5 down to £8.5 which eat our profit, after that we were renting not buying. Guys I appreciate your help and I am going to continue with this because it has happened to another couple who went public and won from southport (cant mention names), so any advice or help will be gratfully recieved.

stebiz

billybason wrote: »

It had wound up quickly, it occured in the late 90s 98/99 maybe. As for contacting the liquidators I did and they were great, as I said it was CAB who advised us when the book ran out. The First court hearing we had was frightening as the solicitor I used failed to turn up and they wiped the floor with me as I protested everything they said, but the court found it in there favour and it was then we decided to sell up and pay the debt off. We then turned to another solicitor who helped us sell the property and he got the original £11.5 down to £8.5 which eat our profit, after that we were renting not buying. Guys I appreciate your help and I am going to continue with this because it has happened to another couple who went public and won from southport (cant mention names), so any advice or help will be gratfully recieved.

Hi Billy,

I know it is something you don't want to hear, but here it goes. You took out a secured loan on your house and stopped making payments. Forget the reason and who advised what, they won't hold records of what they said (or I doubt it anyway). You made no attempt to try and find them. Interest accrued at a figure agreed by yourself and then they came backfor it and asked for it within the 6 year period. You had time to defend and judgment was made.

I have fought many different banks over credit agreement enforcement (and won) but exactly what are you using to argue that the initial judgent was wrong. What new information has come to light?

I'm sorry if this sounds harsh. I don't want it to sound that way. I judge want you to see t from the Judges side. Maybe I've missed the point.

Regards
Stebiz

Paul_Varjak

I am not sure what you could do now. If the company went into liquidation all those years ago it will almost certainly will have been wound up now and with all creditors paid their dividend. In other words there is no company left to sue and no money left to pursue.

The 'company' name you give may well have been a trading name. Without the company number it is hard to know. One possibility is the Old English Joinery Company which last submitted accounts to Companies House in 1998 and was dissolved in 2006.

stebiz

Paul_Varjak wrote: »

I am not sure what you could do now. If the company went into liquidation all those years ago it will almost certainly will have been wound up now and with all creditors paid their dividend. In other words there is no company left to sue and no money left to pursue.

The 'company' name you give may well have been a trading name. Without the company number it is hard to know. One possibility is the Old English Joinery Company which last submitted accounts to Companies House in 1998 and was dissolved in 2006.

I agree entirely. I forgot this angle:o

Clive_Woody

stebiz wrote: »

Hi Billy,

I know it is something you don't want to hear, but here it goes. You took out a secured loan on your house and stopped making payments. Forget the reason and who advised what, they won't hold records of what they said (or I doubt it anyway). You made no attempt to try and find them. Interest accrued at a figure agreed by yourself and then they came backfor it and asked for it within the 6 year period. You had time to defend and judgment was made.

A technical detail, but from the first post it appears the original loan was unsecured, but the collection agency applied succesfully to have this debt secured against the OP's home (charging order).

If I understand the figures correctly the OP paid off £2200 from an original loan of £3700 meaning only £1500 was outstanding. I would be very interested to know what rate of interest was applied to arrive at the figure of £11500. I suspect some very hefty penalty charges were applied, I have no idea of the legalities of these, perhaps somebody else could comment.


The OP may have more success if this is posted on the loans board on here.

billybason

Your right clive, the loan was unsecured and the collection agency applied for the loan to be attached to the property. The interest rate was 29.9% and all was being payed on time, no default untill the payment book ran out. I still have bank statements of all the transaction whilst I was paying by direct debit. I will post it on the loans section, but thanks all for the advise it is all worth it.

billybason

court made me pay £7000 interest for a £1500 loan
In 1997 or there about I got a kitchen and the company went into liquidation in 98. I continued to pay the loan by direct debit until I was contacted by the liquidators to pay by book until further notice. The book ran out and when I contacted them back the number was no longer in use. I went to CAB and they said leave it until contacted. I did then a collection agency contacted me, are you sitting down, well they wanted £11500 for non payment and interest on the loan, originaly £3700 but I payed £2200 of it already, Intrest on the loan was 29.9% at the time. I was taken to court and they won, it became attached to my home. It made sell my home in 2002 and they settled with my solicitors for £8500. I felt sick to say the least. What I am asking is can I get this money back. I can get access to whom I payed via the solicitors I used and the county court who I lost the case AT. I have seen things in the paper "Liverpol echo 13/11/08 Easy claims" but not sure :-P. Help?