Interest Applied after Default

SlowlyGettingIt

Hi

I have an account with Cahoot which was defaulted in 2008.

My credit file shows the default. I am now paying more than the contractual payments and have done, for almost 2 years.

Now cahoot has transferred to santander I have received a statement. I notice on the statement that I am being charged interest of 15%.

Since my account was defaulted can they legally add a monthly interest rate to the debt or should they be pursuing the defaulted amount only?

I feel this interest has accumulated to almost £1K since I haven't been receiving the statements. Would be good to get this refunded off the debt.

Should I pursue this further?

Thanks

SlowlyGettingIt

dtaylor84

SlowlyGettingIt wrote: »

Hi

I have an account with Cahoot which was defaulted in 2008.

My credit file shows the default. I am now paying more than the contractual payments and have done, for almost 2 years.

Now cahoot has transferred to santander I have received a statement. I notice on the statement that I am being charged interest of 15%.

Since my account was defaulted can they legally add a monthly interest rate to the debt or should they be pursuing the defaulted amount only?

Generally being in default means you are charged more interest, because you've broken the terms of the credit agreement.

It wouldn't make much sense for a company to declare you in default if that prevented them charging interest...

PC_Gabriel_Kent

Pursue it, dont let them have you over!!

SlowlyGettingIt

I thought they are only allowed to chase the total amount on the Default Notice.

Am i wrong in assuming this?

PC_Gabriel_Kent

Anything is possible with spamtander

SlowlyGettingIt

Thanks for the responses, can anyone give me solid factual advise with regards to the above?

Thanks again

debtstressed

SlowlyGettingIt wrote: »

Thanks for the responses, can anyone give me solid factual advise with regards to the above?

Thanks again

Hi.

I'm no expert but think maybe you should post your question on the "debt free wannabe" thread as there are some very clued up and helpful people on there who may not check this "Loans" thread.

Hope tha helps.

SlowlyGettingIt

debtstressed wrote: »

Hi.

I'm no expert but think maybe you should post your question on the "debt free wannabe" thread as there are some very clued up and helpful people on there who may not check this "Loans" thread.

Hope tha helps.

Thanks, ill give that a try.