CCJ and interest added

allen35

I've got a CCJ for £10,000 which was executed in 2008, been paying £60pcm and have received a letter from the creditor's solicitor requesting full payment due to non payment since Nov'13, unfortunately the bailiff i've been paying lost my payments but that has now been sorted out.

My main concern is my bill is now £15,000....

So, despite paying in excess of £4,000 off the debt it has increased by £5,000 so looks like I will be paying this for the rest of my life.

Solicitor did seem to think interest was being added because they thought I had missed payments and not stuck to the agreement but feel this isn't the case.

Without being aware I thought a CCJ was executed to help both parties reach an agreement in law and interest was frozen once the CCJ repayments were confirmed by the judge, obviously I was wrong.

Is there anything I should of been told regarding the interest at the time of agreeing to the repayment schedule, I was never aware interest would be added.

Any help with wording a letter requesting interest be frozen would be greatly appreciated or am I wasting my time.....

Thanks

fatbelly

It's a complex area

How can interest be added to a court judgment?

Have a chat to National Debtline and have a copy of the original judgment to hand when you make the call.

allen35

Thanks Fatbelly I'll have a look at that thanks.

ViolaLass

allen35 wrote: »

Solicitor did seem to think interest was being added because they thought I had missed payments and not stuck to the agreement but feel this isn't the case.

Got proof?

Find out for certain first. Fines for non-payment aren't implausible.

longtermplanner

Can you say what the original debt was for? Because that National Debtline sheet only covers debts that fall under the Consumer Credit Act. If your debt didn't, then this will be more relevant: https://www.nationaldebtline.org/EW/factsheets/Pages/15%20EW%20County%20court%20-%20charging%20orders/Page-05.aspx

Statutory interest is currently 8.5% but would have been a bit higher in 2008.

[Deleted User]

It was always my understanding that interest can only be added up to the date of the judgement; which would then be included in the total set out in the ccj. Once the amount stated in the ccj is paid, then that should be the end of it. Might be an idea to get some legal advice, but I think they're playing on a dodgy wicket and you probably got a strong case for stating you are only paying the amount stated on the ccj. The absurd situation is that not only will you never pay the debt they are demanding at the current rate of repayment, but the debt is actually increasing.

National_Debtline

Hello there,

If the instalment has been agreed as part of the court order, statutory interest cannot be added unless you default on payment. It can then apply on the defaulted payment only. If the instalment is simply an informal arrangement, statutory interest could well accrue.

If the CCJ is part of a Consumer Credit Act regulated agreement, contractual interest *may* apply - although there are strict rules + potential arguments against it. These are outlined within the fact sheet that Fatbelly has kindly posted up.

It's a really complex area, and you may need legal advice.

Best wishes,

David @ National Debtline.