When does interest stop?

[Sunshine54]

good evening all

 

a very quick and simple question I believe

 

At what point in proceedings must a lender stop adding interest to an account that has been defaulted then a Court Claim started?

 

I KNOW that this information is somewhere on this forum but just can't find it.

 

thanks in advance for your response (whoever you are )

Sunshine

[Sunshine54]

hello again

maybe it's not such a simple question then.

 

I'll check again in the morning

 

good night all

[Spamalot]

I believe it's when the agreement is terminated... then they no longer have the 'agreement' to say that they can add interest.. at least that's how I've understood it anyway..

 

Spam.

[Sunshine54]

Hi Spam

 

that's what I thought but I've got a terminated agreement where interest has been added for a further period (and added 3 months after court claim was issued) so I'd like to have a definite 'this is when they are no longer entitled to claim..'

regards

S

Edited September 19, 2009 by Sunshine54
typo again

[Spamalot]

Hi Sunshine,

 

I think for the definitive answer you would have to check your t&c's...

 

As a rule it would be when the agreement is terminated, but it would be determined by the terms and conditions of your contract... if you have one that says they can continue to claim interest on a terminated agreement until settled then that's what it would have to be...

 

Sorry not much help... nothings ever really that simple.

 

Spam.

[Sunshine54]

morning Spam

 

do you know - I didn't think of reading the terms and conditions! I'll do that now and see if it says anything at all regarding this.

 

wish me luck cos it's pages and pages and ..... although I probably only need to read the bit about ending the agreement

 

I'll let you know what I find

S

[Sunshine54]

hello again

 

that didn't take long (good advice Spam)

 

the terms and conditions state '..... Any such interest will be calculated on a daily basis from the date the amount falls due for payment until it is received and will accrue both before and after any court order payment.'

 

so does that mean, in theory, that they could continue to add interest until the whole balance of the account, including interest, is received or unless a court orders otherwise?

 

regards

S

[Spamalot]

so does that mean, in theory, that they could continue to add interest until the whole balance of the account, including interest, is received or unless a court orders otherwise?

 

 

It does look that way... ... was it a credit card agreement or something else?

 

Spam.

[Sunshine54]

hi

it's a loan and according to their screen shots re my account they stopped accruing interest 9 months ago (a few weeks prior to issuing a court claim) and the interest rate on the account is 0 % from that date

 

I'm interested as I'm trying to make sense of the balance they are claiming and its not easy. They have provided a spreadsheet that shows interest accrued to a random date during the past few months and a PPI rebate upto another random date but neither date has any significance that I can see.

 

oh dear my head hurts

[Sunshine54]

good evening

 

now I'm confused

 

the annual statement arrived today and it clearly shows the start and end dates and the interest rate that applied during that period. It shows 0% interest and even explicitly states that the interest rate shown is what would be applied to the account for the dates.

 

What I don't understand is how they can issue a current statement showing 0% interest yet issue a claim which has additional interest accrued for some of the period which is supposed to be attracting interest at 0%.

 

Confused

[Sunshine54]

good morning

 

any comments?

S

[RHOOD]

good evening

 

now I'm confused

 

the annual statement arrived today and it clearly shows the start and end dates and the interest rate that applied during that period. It shows 0% interest and even explicitly states that the interest rate shown is what would be applied to the account for the dates.

 

What I don't understand is how they can issue a current statement showing 0% interest yet issue a claim which has additional interest accrued for some of the period which is supposed to be attracting interest at 0%.

 

Confused

 

Can you tell us what company it is -and dont be to specific with dates

and amounts

 

i'll guess its RBS

[Sunshine54]

good morning R

 

it's Egg

 

there's interest at the rate shown on the agreement from a date in Sept 2008 to the remedy date on the DN (if that makes sense)

then there are two more dates that cover the rest of the year and they show interest at 0%.

then there is an amount of interest accrued during the year and I think that it's correct for the few months that the statement says interest was due.

 

hmmm difficult to explain without giving the exact details but hopefully this will be understandable

best regards

S