Interest on Charging Order

[JEB]

I have just been to Court today regarding an Interim Charging order. The Judge decided to make the charge final. I didn't realise there would be a monthly interest on this charge 8% to be exact. Is there anything I can do about this interest charge ?

[Guest]

any more details?

firstly, consider whether the co can be set aside?

[JEB]

I had a CCJ for and amount I owed NatWest and these days they just try for a Charging Order on the property to secure their money if you can't pay the full amount or an amount they are happy to accept. A Set Aside is not possible because I owned up the the full amount of the debt. I didn't realise that I would be paying so much in interest with the Charging Order as they will still be receiving a nominal amount from me. I was wondering if I can appeal against the interest as I understand that this can be done, but should have been done whilst I was a Court. Can I now appeal after the Order has been made final ?

[Guest]

jeb

 

see this for eg http://www.insolvencyhelpline.co.uk/debt_factsheets/charging_orders_in_the_county_court.php

 

re interest:

 

'If a creditor has taken the debt to the county court, they may be able to add extra interest once a charging order is made. Interest cannot be added if:

• the debt is for an agreement regulated by the Consumer Credit Act. This includes most ordinary credit agreements, including bank overdrafts.
  

or

• the debt is less than £5,000 in total, even if it is not covered by the Consumer Credit Act.
  
• If the debt is more than £5,000 and not covered by the Consumer Credit Act, then interest is set by the court and runs at a standard rate.'
  

[JEB]

Ford, thanks, I'll give the insolvency helpline a call tomorrow. Just suprised that the Judge didn't pick that up when mentioned in Court. It's NatWest that will be charging the interest and the Judge said to me it would be cheaper for me to remortagage than pay the 8%. At the rate I will never pay off any of the debt and it will increase month by month ....... lucky old NatWest - robbers. The law should do something about these banks !!!!

[dx100uk]

i was under the impression that if interest was not specifically mentioned in the judgement of the ccj then it can never be charged...might be wrong

 

dx

[Guest]

Ford, thanks, I'll give the insolvency helpline a call tomorrow. Just suprised that the Judge didn't pick that up when mentioned in Court. It's NatWest that will be charging the interest and the Judge said to me it would be cheaper for me to remortagage than pay the 8%. At the rate I will never pay off any of the debt and it will increase month by month ....... lucky old NatWest - robbers. The law should do something about these banks !!!!

 

i presume then that interest shouldn't have been added in your case? let us know how it goes.

unfortunately, the banks rule. if they crash, then so does everything else! (and then who pays for it/bails them out!?) that's why the law favours the 'bankers', and thinks that they are omnipotent. imo of course

[RobinWayRobinme]

A claimant cannot have interest added to judgment debt if the debt is regulated by CCA, even if the agreement states that they are allowed to charge post judgment interest. Therefore, if it can't be added to judgment, it cannot be included in charging order.

 

See 2(3) of The County Courts (Interest on Judgment Debts) Order 1991

(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

[Guest]

jeb

 

Ford, thanks, I'll give the insolvency helpline a call tomorrow.... how did it go?

[JEB]

Insolvency Helpline no good, but I did contact the National Debline who said that the interest is calculated and only applied when the Judgement debt has been cleared. I need to check out the National Debtline webside under Charging Orders. I'm not at all happy in the way the Judge has handled my case. I asked if any of the other creditors has raised any objection and he seemed very dubious and said no. I also applied for a set aside which he dismissed because I had already admitted the the whole of the amount. I thought you could put in a defence saying that "you now only agree to some of the debt".

[debbbbsy]

Post Judgment Interest cannot be applied unless your original agreement included a Post Judgment Interest Clause.

Just becuase you admitted the debt owing, you can still challenge this judges "Unfair" decision. This is a major problem for consumers, Stupid judges with a teeny bit of consumer knowledge are deadly. As a litigant in person, you don't stand a chance in court.It is desperately unfair. But it doesn't mean you have to sit back & take it. When I phoned my court about a "Stupid" judge, I was informed that she had been removed from her position because of other complaints. They are not GOD. There decisions can be challenged. The sooner the better.

Have you requested a copy of the credit agreement?

If not. You cannot do a CCA. THe judgment is now your agreement. You will have to use a CPR request.

 

Debs x

[JEB]

can be challenged. The sooner the better.

Have you requested a copy of the credit agreement?

If not. You cannot do a CCA. THe judgment is now your agreement. You will have to use a CPR request.

 

Debs x

 

I have a copy of the credit agreement. Someone will have to guide me through the steps on this, can anyone help. I am really miffed with the outcome. All he kept saying was "you agreed to the full amount" and that was it. The only thing he seemed concerned about was that they sent a Barrister instread of a local Sol.