Interest not included in £5000 limit?

[newacre]

I read in the Patricia Pearl book that interest is not taken into account when considering if the total is less than £5000 for small claims. I have just been to my local CC (Leeds) and asked at the counter and they were sure that it is also the case for contractual interest.

Can anyone confirm this?

[Bigmac versus]

Interesting always wondered that one myself about contractual being added after the limit.

[ian cognito]

Think this is because the statutory interest is added when you go to court whereas you claim contractual interest along with your charges, so at the point you file your claim, the charges and the contractual interest already make up your claim.

I'm sure someone will tell me if I am wrong!

[hagenuk]

Perfectly correct Jan.

[ian cognito]

Thank you hagenuk, you most certainly are a gentleman x

[newacre]

i understand your logic, which is why i asked. but that is not what they said. they said that it was the case for contractual interest ie that it is added after.

[newacre]

i have read on and the answer is here;
Civil Procedure Rules rule 26.8
PART 26 - CASE MANAGEMENT – PRELIMINARY STAGE

On page 64 PP says that it applies "whether or not that interest is contractual or claimed pursuant to statute".

[GaryH]

Yep, there is some conflicting advice about this on the site. My understanding is that interest is not included in the 5k threshold, wither its contractual rate or statutory judgement rate.

[ian cognito]

Yes, I found that on another thread after reading this one, seems to be some confusion, probably because the case management doesn't make it clear that it is any interest, the book seems to clear it up though. Thanks for that.