JUdgment Order-Post Interest Advice

thechippy

I think that applies to statutory interest and not contractual.

Who removed the arrangement? and did they go back to court to do it?

Yes, he should apply for a time order.

U2fire

The arrangement was just a verbal agrement between the parties.
Thanks

thechippy

U2fire wrote: »

The arrangement was just a verbal agrement between the parties.
Thanks

In that case, it was not worth the paper it was written on...;)

I know I'm repeating myself, but after the judgement debt is settled, I think they will fall at every hurdle in trying to bring another claim for the interest.

If you read my other post again, they have not adhered to legislation and will therefore have no right to claim the interest. They MAY try it, but defended properly they can be batted down at every corner.

U2fire

Thanks i have read and spoken to them.
Can you add anything as i would appreciate any input.

Tixy wrote: »

Hi

Sorry I'm just about to log out so can't try to help more fully at the moment - but in the meantime have you read the national debtline guideline on charging interest post judgement - its quite a useful read if you haven't seen it - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=18_interest_charges_on_a_consumer_credit_judgment

thechippy

Do you mean me or Tixy...;)

thechippy

U2fire wrote: »

Thanks. But i have to be sure for him to stretch to pay the rest of the funds of the Judgment or if incorrect it would compound his problems.
He has just been informed that the arrangement is not now being honoured and interest is once again being applied.
If he was to pay the Judgment what then? He couldn't risk sitting back and let the figure increase in the hope that it couldn't be enforced.

.....He has to pay the balance of the judgment in any event....;)

U2fire

Thanks, any or both to reply, more advice the better.

My thoughts on the way forward.
He should apply for a time Order on the remaining £14k. (how would he know if Statuary interest is to be added?)

What of the other £60k that the creditor says he owes, how does he approach that as that will now be increasing with interest since the arrangement has been taken away, he cant just sit back even if he thinks it is incorrect.
Sorry if i repeat on a couple of posts.

thechippy wrote: »

.....He has to pay the balance of the judgment in any event....;)

thechippy

Evening U2,

Had to nip out last night, so couldn't answer.

The thing to concentrate on is clearing the judgement debt down to zero and then tackle what they decide to do about the contractual interest.
To answer a question in your above post - this debt is NOT subject to statutory interest.

It's IMO that they would simply not get the interest, even if they DID attempt litigation on it.

Did the default notice have the following statement....?

... ‘You should be aware that if we take you to court and get a judgment against you requiring you to pay us the money you owe us under the agreement, you may have to pay us both the amount of the judgment and the interest under the agreement on all the sums owed by you at the date of the judgment until you have paid these in full. This means that even if you pay off the whole amount of the judgment, you may still have a further sum to pay’.

If not, they have broken rule No.1

They have also not followed the other rules, such as the six monthly notices etc. Basically, they would REALLY struggle to win the case, as they have not followed the protocol that gives them the right to charge the interest in the first place.

They can add interest to the account all they like (and want it as much as they like as well), but if they haven't followed the rules that allow them to do so, well...

Have another read over post #10

I try to keep abreast of most things and as far as I'm aware, I don't know of one single case where a creditor has tried bringing a separate action for the interest (let alone won!!)

You also then have CPR 7.3 (I think?), which basically infers that anything to do with a debt should be brought under one single claim. The reason being, it allows both the debtor and creditor to fully understand where they stand and to bring the matter to a close.

To bring another action could be seen as an abuse of process, or an unfair contractual term for example.