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Understanding LSE (Legal Aid) interest charges
jewelly
Posts: 516 Forumite
I'm not sure if this is the right pace for this post, but am not sure where it should go. But, here goes ...
Due to my divorce proceedings in 1991 I ended up with a debt to the Legal Services Commission, and a charge against the house for recovery of it whenever the house is sold.
They recently wrote and said the outstanding bill was £10,315.10 (it started at around £6K!). They stated that the interest charge is 8%with a daily interest charge of .96p. So I decided to pay off as much as I can, and sent a cheque for £4K.
Now they have written again saying the outstanding amount owed is now £6,315 and the daily interest is .96p. I would have expected the interest charge to be lower as the debt is now lower. I rang them today to query this and they said "the interest charge remains the same".
Can anyone explain this as I am baffled!
Thanks in advance.
Due to my divorce proceedings in 1991 I ended up with a debt to the Legal Services Commission, and a charge against the house for recovery of it whenever the house is sold.
They recently wrote and said the outstanding bill was £10,315.10 (it started at around £6K!). They stated that the interest charge is 8%with a daily interest charge of .96p. So I decided to pay off as much as I can, and sent a cheque for £4K.
Now they have written again saying the outstanding amount owed is now £6,315 and the daily interest is .96p. I would have expected the interest charge to be lower as the debt is now lower. I rang them today to query this and they said "the interest charge remains the same".
Can anyone explain this as I am baffled!
Thanks in advance.
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