Interest charged after judgment

[tinkerbell20]

Can a creditor charge contractual interest after judgment if it is not stated on CCJ? Pal has a charge on home for CCJ issued 2001. Wants to clear it & creditor is asking for another £8,500 interest.

[djc]

tinkerbelle20

 

general view is that unless the ccj specifically states that interest can be added then the creditor cannot add it on, would appear to be unlawfull.

 

djc

[I've got no money]

Can a creditor charge contractual interest after judgment if it is not stated on CCJ? Pal has a charge on home for CCJ issued 2001. Wants to clear it & creditor is asking for another £8,500 interest.

 

What was the 2001 CCJ for?

 

It may be useful to have a look at the CCA 2006 - Section 9 onwards

[Bill Shidding]

Hi All

 

Here is section 17 of the Consumer Credit Act 2006.

It appears a creditor can recover post judgment interest as long as they send you a notice.

 

 

17

Interest payable on judgment debts etc.

After section 130 of the 1974 Act

 

Interest

130A

Interest payable on judgment debts etc.

(1)

If the creditor or owner under a regulated agreement wants to be able to recover from the debtor or hirer post-judgment interest in connection with a sum that is required to be paid under a judgment given in relation to the agreement (the ‘judgment sum’), he— (a)

after the giving of that judgment, shall give the debtor or hirer a notice under this section (the ‘first required notice’); and

 

(b)

after the giving of the first required notice, shall give the debtor or hirer further notices under this section at intervals of not more than six months.

 

 

(2)

The debtor or hirer shall have no liability to pay post-judgment interest in connection with the judgment sum to the extent that the interest is calculated by reference to a period occurring before the day on which he is given the first required notice.

 

(3)

If the creditor or owner fails to give the debtor or hirer a notice under this section within the period of six months beginning with the day after the day on which such a notice was last given to the debtor or hirer, the debtor or hirer shall have no liability to pay post-judgment interest in connection with the judgment sum to the extent that the interest is calculated by reference to the whole or to a part of the period which— (a)

begins immediately after the end of that period of six months; and

 

(b)

ends at the end of the day on which the notice is given to the debtor or hirer.

 

 

(4)

The debtor or hirer shall have no liability to pay any sum in connection with the preparation or the giving to him of a notice under this section.

 

(5)

A notice under this section may be incorporated in a statement or other notice which the creditor or owner gives the debtor or hirer in relation to the agreement by virtue of another provision of this Act.

 

(6)

Regulations may make provision about the form and content of notices under this section.

 

(7)

This section does not apply in relation to post-judgment interest which is required to be paid by virtue of any of the following—

 

(a)

section 4 of the Administration of Justice (Scotland) Act 1972;

 

(b)

Article 127 of the Judgments Enforcement (Northern Ireland) Order 1981;

 

©

section 74 of the County Courts Act 1984.

 

 

This section does not apply in relation to a non-commercial agreement or to a small agreement.

 

(9)

In this section ‘post-judgment interest’ means interest to the extent calculated by reference to a period occurring after the giving of the judgment under which the judgment sum is required to be paid."

 

 

 

 

OP

 

creditor is asking for another £8,500 interest

 

See sections 1 and 2 above.

 

I think the creditor is "trying it on" if they did not originally obtain judgment with interest under the county courts act or contractually. They may be trying to remedy their mistake by using the above, which does not allow them to reclaim interest until they send the first notice. Any interest accrued before that notice is given, is unrecoverable.

 

 

 

Bill

Edited May 31, 2009 by Bill Shidding

[postggj]

THIS IS GREAT

 

JUST BEEN HAVING A DEBATE ON THIS

 

http://www.consumeractiongroup.co.uk/forum/legal-issues/202208-fat-man-funding-corporation.html