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Legal aid charge 8% interest
I was eligible for legal aid for a divorce a few years ago and accumulated almost £5k of solicitors fees even though I did most of the work myself to keep any costs down. I was on low income with no savings and 2 small children to support when their father chose to pay nothing. It wasn't until a year after the divorce was settled that I discovered that my legal aid 'loan' was increasing by 8% interest at £1 a day, horrified I borrowed from family to pay off the balance. I want to ask how the rate of 8% can be justified when the Bank of England rate is so low and usually only the most vulnerable use legal aid?
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Comments
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It doesn't need to be justified.
It's the deal on offer and lower than most other alternatives.1 -
Maxizmum said:I was eligible for legal aid for a divorce a few years ago and accumulated almost £5k of solicitors fees even though I did most of the work myself to keep any costs down. I was on low income with no savings and 2 small children to support when their father chose to pay nothing. It wasn't until a year after the divorce was settled that I discovered that my legal aid 'loan' was increasing by 8% interest at £1 a day, horrified I borrowed from family to pay off the balance. I want to ask how the rate of 8% can be justified when the Bank of England rate is so low and usually only the most vulnerable use legal aid?1
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8% simple interest is about standard across the board as it is the amount a court would apply, and as stated above, is set by the ministry of justice.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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