Help with an old Capital one debt

sanctuary1

Hi,

In 2006 due to personal circumstances i became unable to pay a few bills, 2 credit cards and 1 store card.
I went through the CAB and made arrangements to pay these 3 accounts off a reduced payments, however one of them, capital one, kept on refusing the reduced payment and charged me a fine each month for not making the full payment.
Then in October 2006 Capital one applied to the courts for a CCJ which was granted and i had to make payments back to them for £1.00 each month.

Since then the 2 other accounts have been paid off and i have been trying to sort out capital one but their stating that they want more than the court order states.

At start of 2006 i owed £180.00 on my capital one card
The court order states i owe £163.00 plus court costs of £92.00
Since the beginning i have paid off £52.00 - £1.00 per month
However capital one are stating that i owe them £581.00 and that i have to pay that amount off to have the CCJ removed from my account and that they only applied to the court for some of the amount owed not all.

Just wondering where i stand in all this, can they refuse to have the ccj removed if i pay the amount on the court letter off in full.
Have rang the CAB office but they can't see me for another 3 weeks as they are fully booked.
Any help in this matter would be appreciated.
Thanks

Tixy

Hi

Do you have a copy of the judgement? does it say they are allowed to continue to add interest to the debt?

If you can still only afford £1 a month then just continue to pay that. If they want to collect more than that then they should apply for a redetermination from the court (where a judge would reassess your finances to see if you can afford more).

king100

Ok so they went to court, got a CCJ for £255 but are now sating that you owe £581.

Does the CCJ state anything about contractual interest.

Different types of claim

If a creditor sues you in the county court on an ordinary credit agreement under the Consumer Credit Act 1974, you may be sued for the full balance payable under the agreement. This would include the balance owed and all the interest payable under the agreement. Once you have paid the full amount owing on the county court judgment, that is normally the end of the matter and no further interest is payable.
Alternatively, the creditor may get a county court judgment that includes court fees and interest up to the date of judgment. Once you have paid the full amount owing on the actual judgment, as long as there is no clause in the original agreement that allows the creditor to claim interest after the county court judgment, that is the end of the matter and no further interest is payable.
However, some credit agreements allow a creditor to add contractual interest on to the amount of the county court judgment.
This has been confirmed as legally binding following a Court of Appeal case taken by the Office of Fair Trading against First National Bank. This means that, while you are paying the county court judgment, contractual interest may be charged on the amount that you still owe on the judgment. This may not be made clear to you by the creditor. If this is the case, when you have paid the original balance owed on the judgment, you will find that you have an extra amount that you may still owe the creditor, even though the judgment has been paid in full. To force you to pay this, the creditor would have to sue you again.
To work out whether you have paid the judgment balance, you should check your own payment record or contact the creditor to seek a written confirmation that the county court judgment amount has been paid in full.

king100

snap Tixy but you got in there just before me

sanctuary1

Hi the letter for the court states as follows:

On the application of the defendant
The judgment (or order) made against the defendant in this court

On the 25th August 2006
For payment of £163.00 and £92.00 for costs is hereby varied.

It is now ordered that the defendant pay the claimant the outstanding sum, including any interest,
(of £ ) (by instalments of £1.00 for every calender month, the first payment to reach the claimant) by the 12th of November 2006)

Letter dated 12 OCT 2006

king100

Tixy

Would the CCJ state the APR rate of would that be on the agreement.

Roughly I think your APR is 28% as they seem to have added £71 per year, I think.

But if you are paying £52 per year and they charge £71 per year you will never pay it off. So I think that its only for the judgement as in any interest accrued up until then. As a judge would not set £1 if it didnt actually decrease the debt.

fermi

Or did they just originally claim for the "arrears" under the agreement?

Some creditors do that occasionally. There is a legal/technical reason for that, but can't recall exactly what it is at the moment.

Tixy

I'm not sure it would be on the CCJ King

Sanctuary - it might be worth calling national debtline for some guidance - they should be able to advise much quicker than CAB (and its a free call from landlines). Do you have a copy of your original agreement with capital one? if so might be worth finding that out before you speak to them.

sanctuary1

Hi,

Have just spoke to Bryan carter solicitors who are dealing with the account now - they say that no interest has been added since the CCJ and that they only applied to the court for some of the costs and if i pay off what is stated on the CCJ letter and then stop paying they would reapply to the corts for the rest of the amount owed.
They say the balance as it stands is £529.10.
The lad i spoke to say that they only went for part payment for the CCJ.

king100

Well they applied for a CCJ for part of the debt, why didnt they apply for the full amount.

The other part of the debt I would suggest is SB now?

Tixy Fermi any suggestions?

king100

sanctuary1 wrote: »

Hi,

Have just spoke to Bryan carter solicitors who are dealing with the account now - they say that no interest has been added since the CCJ and that they only applied to the court for some of the costs and if i pay off what is stated on the CCJ letter and then stop paying they would reapply to the corts for the rest of the amount owed.
They say the balance as it stands is £529.10.
The lad i spoke to say that they only went for part payment for the CCJ.

Why would they do that?