Can anyone advise re CCJ and ongoing charges please? - post judgment interest

sionnach67

Hello!

I've been on a DMP for just over a year, and it's gone pretty smoothly really, but I received a yearly statement from one of my creditors ( the only one who took me to court and gained a CCJ) which has made me go :eek:!

Basically, the debt is £5500 to this creditor, and I pay £138 a month ( which is what I was paying before they took me to court in June this year, but that's another story!). So, I've paid a little over £1600 over the year, but, with interest charges and arrears charges, the amount I have actually paid off over the year is less than £100!

Does anyone have any idea as to what would be the best way to approach them to ask them to reconsider the excessive charges? The standard letters on my DMP site just don't seem adequate.

( for completion, my overall debt is now around £19000 and I pay £650 a month to my DMP)

Thank you very much!
Sx

fermi

Are they still adding on interest & changes now that the CCJ has been made?

If they are, then for many debts they are only allowed to do so if your original agreement specifically had terms in it allowing this.

See this link: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=18_interest_charges_on_a_consumer_credit_judgment

A bit complicated depending on when the CCJ was and the type of debt, so if you are not sure you could always give the people who wrote that factsheet a call to work out what applies to you. Free on 0808 808 4000.

Query with your DMP company as well.

You can also apply to the court to have interest/charges stopped if necessary.

sionnach67

Thank you very much... I'll do some investigation!

And I never knew I could apply to the court again... very useful information!

Much obliged to you :-)

Sx

Horseunderwater

CAB do a form letter for every debt, that requires all creditors to desist from adding interest to same debt. We sent one to all of ours and then once frozen we made token £1 payments each month until we could re mortgage and sort them out. It took a year to get it to that point. As soon as I had the money, I then rang each one and agreed 50% full and final settlement with them all. Some accepted it, no problem others wanted 60%. All were then paid over phone and credit files etc were marked as settled with some notes. That was back in 2004/5, which is almost 6 years now. We paid each mortgage payment with new provider and got a better deal after 2 year fixed for 5 years with Santander and have not missed one with them either. I did all of this myself, without using one of those debt companies, so saved myself loads of fees in the process.
Frances

sionnach67

Hi Frances.
Thanks for your reply, and congratulations on dealing wth your debt issues!
Letters have gone to the creditors asking them to stop interest, but they're not obliged to do so.... I just couldn't get my head together, which is why I used a DMC ( one of the free ones)
I need to check my original agreement again, to see what it says, and as Fermi says, maybe apply to the court to have the interest and charges frozen.

Just when I thought it was all going so swimmingly

Sx

thechippy

Do you still have copies of the court papers and of the actual judgement and what it says?

Post judgement interest cannot be added on any debt covered by the CCA 1974, which is the majority of consumer debt.

It sounds like a case of the judge not knowing the law and a bit of hoodwinking going on by the creditor.........

fermi

thechippy wrote: »

Post judgement interest cannot be added on any debt covered by the CCA 1974

Not always true.

If the credit agreement says that it can be added post judgement, then it can.

See about 1/2 way done on: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=18_interest_charges_on_a_consumer_credit_judgment

It explains in that when this can be done, and what notices etc the creditor has to send to allow then to do this.

So sionnach67 needs to carefully check through that to see whether the original debt allowed it, and if the creditor has done what they should do to allow it after the judgement.

thechippy

You're quite correct ferms, but it's as rare as hens teeth for it to be in an agreement. Also, the interest builds up in a separate pot alongside the judgement amount. After the last payment is made on the ccj they would have to take you to court again to get the interest and legislation makes this very difficult for them, so invariably it does not happen.

They also HAVE to mention it within the p.o.c and on the default notice.

fermi

I agree it's not common.

But making a statement such as "Post judgement interest cannot be added on any debt covered by the CCA 1974"

gives a false impression to anyone reading this.

You need to check carefully the paperwork for your own situation to see what can be done and what cannot.

thechippy

Yes, I should have been clearer. Some creditors try it on by claiming statutory interest which cannot be applied to any debt covered by the cca 1974.

They can claim contractual interest, but it must be in the original agreement and they must follow correct procedure. The fact that the interest accrues in a separate pot alongside the judgement sum and remembering that legislation (can't remember which!!) makes it almost impossible for them to take you back to court to claim it, makes it a mute point.

I don't know if you agree, but it seems to me that the judge has done something wrong here?

fermi

thechippy wrote: »

I don't know if you agree, but it seems to me that the judge has done something wrong here?

Maybe. But also maybe not.

There isn't enough information to say one way or the other, which is why I'm hedging my bets and suggesting that the OP gets it checked out by someone who knows all the ins and out.

I think it's quite likely the creditor is pulling a fast one, but I don't want to say they are and send the OP down one road, only to find later that it wasn't the correct reading of the situation.