Interest Charged by DCA

[Fighting-Fit]

HELP NEEDED

 

Would someone be able to help me with this please.

 

A DCA has provided a CCA which is forceable . Now the original agreement was on interest free credit. Does this mean the DCA cannot add interest to the debt or is that just wishful thinking on my behalf. I have agreed a monthly fee (I told them what I could afford to pay) but do not want to incur massive interest charges.

 

Please HELP if you can.

THANKS

[rippedoffagain]

I don't think so!

 

Once the account is defaulted, unless there are some specific terms in the T & C, then no interest should be added, unless they proceed to County Court, and then they can claim 8%pa under the County Court rules.

[Fighting-Fit]

Hi rippedoffagain, did you mean they can't add interest because the original agreement was for Interest Free.

[OnMyWayOut]

If it is under the CCA they can't add interest after judgement unless the agreement specifically states this. They can only charge interest @ 8% from the date of issue to the date of judgement in this case as I understand it.

[rippedoffagain]

Hi rippedoffagain, did you mean they can't add interest because the original agreement was for Interest Free.

 

No, any agreement. Once they cancel an agreement, then they simply don't have your "agreement" to charge interest. ( I would be surprised if the interest free agreement, didn't have a clause allowing interest to be charged in certain circumstances. For example it is common to allow say one year free, but if it is not settled in full, on time, then interest will be charged for the whole of that year).

[Fighting-Fit]

Thanks Guys. It has not been to court so no judgement. From what you are saying this means no interest can be charged. Big thanks. this is a big worry off my mind. I was posting this while you posted. So they can add interest then?

[OnMyWayOut]

Have a good read of the agreement - they would have to state that interest can be charged otherwise they can't. But as I said above, there is provision for them to claim 8% interest while a Court process was in progress.

[Fighting-Fit]

Many Thanks.