Is there any limit to the interest rates debt recovery companies can legally charge?

Karen_L_2

A very good friend of mine has just receieved a court summons from a debt recovery company for over £10,000 on a debt of £1,500 that was transferred to them only a year ago. The difference is all interest charges - surely there must be some sort of legislation that limits interest charges?

She has been making regular payments to them through a debt management company but clearly the interest is so high that the her debt just keeps rising.

Does anyone have a similar experience & can offer any advice?

rayday2

You need to get her to go to the CAB or ring national debt helpline up there is a good chance if she let it go to court with the right people behind her the judges could throw it out and cancel the debts especially has she has been trying to pay, courts hate there time being wasted.

Please encourage her to seek professional advice it could be in her interest!