Interest after Judgment on regulated loans

[MilliganMike]

Hi all, newbie but any help would be very welcome.

 

I have a little legal knowledge but am woefully undereducated on interest after Judgment, and a friend has asked me for advice.

 

What exactly can lenders charge after Judgment? In the terms, it says they can continue to add contractual interest. The particulars of claim state they can add statutory interest if they wish. However, someone told me that since October this year, you cannot add contractual or statutory interest to CCA regulated loans.

 

I'm basically clueless and if anyone could break it all down for me with references to the relevant law I will forever be indebted to you, no pun intended.

 

Thanks very muc:)h

[supasnooper]

If the agreement states that they can add interest after a CCJ then they may do so.

 

However, Statutory interest cannot be added to debt that is regulated by the Consumer Credit Act 1974

 

S69 interest is interest which is added to the principal sum under the County Courts Act 1984 S69

 

Why arent they entitled to it?

 

Because its a regulated agreement regulated by the Consumer Credit Act 1974 and the County Courts (Interest on Judgment Debts) Order 1991 (No. 1184 (L. 12)) section 2(3) states they are not entitled to it !!

 

 

The County Courts (Interest on Judgment Debts) Order 1991 (No. 1184 (L. 12))

 

The general rule

2. -

 

(3) Interest shall not be payable under this Order where the relevant judgment -

 

(a) is given in proceedings to recover money due under an agreement regulated by the Consumer Credit Act 1974.

 

(b) grants

(i) the landlord of a dwelling house, or

(ii)the mortgagee under a mortgage of land which consists of or includes a dwelling house,

a suspended order for possession.

[MilliganMike]

That's fantastic, thanks for your help.

 

However, can I just clarify, they are allowed to add contractual interest in all circumstances?

[MilliganMike]

..and is there an authority for this?

[MilliganMike]

Sorry, but I never got an exact answer to the question above.

 

Can lenders always add CONTRACTUAL interest on CCA loans, as long as there is a post-Jugdmwent provision?

 

Thank you very mucgh for your help

[MilliganMike]

Hi

 

is anyone able to help? Sorry to pester. I have noticed s,130 of the Consumer Credit Act says a creditor must give notice if they are going to add interest after judgment. There has been no notice given, but the agreement has a term allowing the bank to add it.

 

What would vbe the position?

[supasnooper]

The original agreement must contain a clause allowing for contractual interest post judgment. This was confirmed in the case of OFT V First National.

 

I have noticed s,130 of the Consumer Credit Act says a creditor must give notice if they are going to add interest after judgment. There has been no notice given, but the agreement has a term allowing the bank to add it.

 

 

This can only applied on judgments after the Consumer Credit Act 2006 came into force and they must notify you of their intention of this

Edited January 25, 2010 by supasnooper
typo

[humbleman]

What about instance where the claimant have made you part 36 offer, that the defendant declined.