Interest chargeable when none is specified

bris

It's a figure they are legally allowed to charge, they don't need your permission. It's still under the 8.5% guidline so you have to soak it up.

They charge this interest rate because it's a good indication of a rate for borrowing, this makes sense, no? It does to me, although you have my sympathies for having to pay it in the first place, eldery care should be free for everyone.

The longer you leave it the more interest your paying.

wealdroam

MRH123 wrote: »

I have no real problem as such with this figure (5.99%) however i would like to know how they have decided on this without an agreement in place, its seems unfair that they can arbitrarily pick a figure as regards the interest rate, surely i could argue that this has never been agreed and that the interest rate should be the Bank of England rate ie 0.5% which is what i think is fair or we could compromise and meet half way.

Have you expressed your concerns to the council?
Have you asked them how they arrived at that figure and how they can justify it?
Have you suggested that that amount is unfair?
Have you tried to put an agreement in place?
Have you told them what you think is a fair amount and suggested a compromise?

MRH123 wrote: »

as for this not a commercial debt, i dont see how the local authority loaning an elderly person funds to cover her care fees is in anyway commercial?

In my opinion the debt is commercial.
It is not the elderly person that owes this money. It is not even an individual that owes the money.
It is the estate that owes the money.