charging order

sizzlerman

had a charging order put on my property about four years ago and was asked to pay just under five grand. I was under the impression that if it is less than five grand then you dont pay interest. I carried on making payments but after a while found it difficult so got in touch with them to lower the payments, they later sent me a statement after about three years and I virtually owed what I started with. I asked them why and they said that it was contractual interest from the original loan, so I phoned up two solicitors and both of them said that as soon as they take me to court the original agreement is 'null and void' and all I have to pay is the amount set out in court. I explained this to them but they are adamant that I have got to pay interest. One solicitor said keep a note of what you paid and when you have paid them what you owed send them a letter saying you have filled your part of the egreement and no more payments will be sent but I am worried that if I do this they will drag me back into court. I am writing this because at christmas I will make my last payment and dont want any repercussions in the new year. Am I in the right?

mjm3346

Perhaps the company you owe are getting confused with a CCJ where there are ways that interest can still be charged. You are correct that they cannot with a CO for less than £5k, see below from the National Debtline.

If the creditor has taken the debt to the county court, they may be able to add extra interest once a charging order is made. Interest cannot be added 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.

From

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=15_charging_orders_in_the_county_court