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Court interest charges.

Now that there has been an influx of court proceedings since the Beavis case, I can't help noticing the interest charges levied by claimants, currently set at 8%. I realise that this may well be a statutory figure but when the base rate is currently running at .25%, then 32 times the base rate does seem excessive. Also, does it then become a profitable decision to delay court proceedings for a year or so, knowing that their 'little pot of gold' is making a nice little earner (assuming they win of course).

Comments

  • Castle
    Castle Posts: 4,956 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Actually the statutory rate is 8% plus the current bank base rate, (so 8.25% now); but it would have been 8.5% for the past 7 years.

    If it went to court hopefully the judge would ask why the PPC has waited all the time to issue proceedings.
  • bargepole
    bargepole Posts: 3,238 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    It isn't automatically 8%, that is the rate applied to default claims where no defence is filed.

    In a contested hearing, the Judge has discretion to award whatever interest rate he sees fit, which is often more like 2% to reflect the rate of inflation.

    I have been providing assistance, including Lay Representation at Court hearings (current score: won 57, lost 14), to defendants in parking cases for over 5 years. I have an LLB (Hons) degree, and have a Graduate Diploma in Civil Litigation from CILEx. However, any advice given on these forums by me is NOT formal legal advice, and I accept no liability for its accuracy.
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