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

thechippy

Quite right.

I think it would be useful if the OP removes all personal details, scans and posts up the judgement. Either that, or type it out word for word.

thechippy

Another bump for this, as it's becoming quite interesting.

I've been trawling through the hundreds of documents and extracts I've been saving over many years on my pc and found this....

From 2008..

" Once a judgment has been entered, the creditor has to serve notice that they are claiming post-judgment interest to the debtor. There is a statutory requirement to do this under s130a Consumer Credit Act 1974. Further reminders of their ability to claim it have to be sent to the debtor every six months. This interest can be charged from the date the first notice is given, if the creditor does not serve the notice they cannot add it until they do actually serve the notice.

Due to these new rules a creditor cannot include a claim for post-judgment contractual interest as a part of the actual judgment itself within the particulars of claim, they do not have the legal entitlement to do so – interest can only start to accrue once notice has been served on the debtor - which starts after the court order has been granted. Therefore, the post-judgment interest will accrue in a separate pot, and not part of the original judgment debt at all. This rule is made very clear via the prescribed rules outlining how s130a notices should be served and also via Reg 9a of the Enforcement, Default and Terminations Notices Regulations 1983."

Bearing in mind the above, it's also quite clear that the provision for post judgment interest has to be within the original agreement and a specific additional entry has to be on the default notice. If not, they can't charge it.

So, with regards to the OP, I read it as this.....

Judgment was entered for £5,500 and is being repaid at the rate of £138 p.month, or £1656 p.year. If the OP keeps track of all payments, they will know when £5,500 has been paid. If the creditors statement at this time still shows an outstanding amount of lets say £4000 - this will be the post judgment interest amount. Basically, the judgment amount / ccj has been settled and they will have to go to court again to force payment of the £4000, but they can't, as I beleive that the civil procedure rules prevent them from doing so. When the £5,500 has been paid. a letter can be obtained from the court stating that the judgment has been fulfilled / settled.

What the creditor is doing at the moment is this..
They are adding interest to the £5,500 on a monthly basis and taking your payments against this amount, which is why it looks like the debt is only decreasing marginally. They may well show this on the statements, but the fact remains that when the £5,500 has been paid, the judgment has been discharged.

Oh, and adding late payment fees or any other silly charges is a no no, just the interest. They should have also made it crystal clear the exact sum on which they are charging interest, the interest rate and the term over which they intend to charge it.

Anyway Ferms, have I made this better of worse.....:p:D

fermi

thechippy wrote: »

Anyway Ferms, have I made this better of worse.....:p:D

A bit of both. :laugh:

thechippy wrote: »

they will have to go to court again to force payment of the £4000, but they can't, as I beleive that the civil procedure rules prevent them from doing so.

That is something I've seen claimed, but not a definitive answer ever given by anyone I trust.

Regards what the creditor is or is not claiming as the balance owed, we don't know how that is being reported either,

Particularly as this is going through a DMC, so they may be doing their own thing or even the wrong thing when giving a DMP statement/balance.

At the moment we just have a longlist of 'ifs' and 'buts' and not a lot of concrete facts.

fermi

Presumably this?

http://webcache.googleusercontent.com/search?q=cache:QnLJqbHrXwQJ:www.consumeractiongroup.co.uk/forum/entry.php%3F186-Time-Orders-A-Guide-For-The-Rest-Of-Us%26goto%3

thechippy

Interesting, I don't think I pinched my copy from there.

It seems their inability to bring a separate action may come under CPR 7.3 as an abuse of process.

I don't think there is any case law to support this, as I don't think a creditor has ever actually tried it to date.

Nevertheless, something concrete written in plain English would be nice...;)

fermi

I have an idea who to ask.

thechippy

fermi wrote: »

I have an idea who to ask.

Go for it.......;)

fermi

Will try later.

DVardysShadow

Horseunderwater wrote: »

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

:eek::eek::eek: For anyone thinking of doing this, Always get the F&F agreed in writing first. Otherwise, unscrupulous creditors may take the money and continue to chase for the rest.

sionnach67

Hi there
So sorry for my tardy response to what appears to have been a very interesting debate! The MSE forum moves so quickly I lose track!

The original claim by the creditor ( via their solicitor) only made claim for interest from the date of the claim to the date of the judgement as far as I can make out.

The original judgement was issued as a default judgement as apparantly they did not receive my paperwork , I applied for a variation order, which was granted. There is no mention of interest in either of these.

BUT... I checked the original credit agreement and it does say " Interest shall be charged under this agreement at the interest rate both before and after any judgement which we may obtain against you"

So, it looks like they can ?


I know this is REALLY cheeky, but would anybody be able to give me an idea of how to draft a letter to the creditor to ask that they stop the late payment charges? Its just I get a bit overwhelmed by the technical aspects of it all .....

Thank you for your very interesting contributions thus far!

Sx