Need advice re Merit Finance

[Biggjb]

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.'

Also:

 

The County Courts (Interest on Judgment Debts) Order 1991

See for eg 2(3)

(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

 

What the above passage is stating is that the original interest (APR) can no longer apply as the New Statatory interest 8% APR will apply.

 

the 91 order states for eg

 

2.—(1) Subject to the following provisions of this Order, every judgmentdebt under a relevant judgment shall, to the extent that it remainsunsatisfied, carry interest under this Order from the date on which therelevant judgment was given.

(2) In the case of a judgment or order for the payment of a judgmentdebt, other than costs, the amount of which has to be determined at alater date, the judgment debt shall carry interest from that later date.

(3) Interest shall not be payable under this Order where the relevantjudgment—

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

 

This part basically implies that interest can be charge at stat rate. However if the court order a repayment term i.e. through attachment of earnings etc then Stat interest can be suspended

 

Once a CCJ has been obtained no company can charge Default interest. The debt if below £5000.00 is frozen (excluding addtional charges) If it is above £5k then they can charge Default interesrt at 8% each year.

 

To clarify once a CCJ is obtained it the interest cannot be substituted for the original interest rate as

A: if the debt is below £5k the balance is frozen

B: If above £5k they can only add 8% stat interest

[the tinkerman]

Okay as granted

 

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.'

 

(3) Interest shall not be payable under this Order where the relevantjudgment—

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

 

but as above in both cases if it IS covered by the Consumer Credit Act even if it is over 5k then surely interest is not payable

 

Also just to clarify if the court order a repayment term i.e. say £40 per month does this apply just to an attachment of earnings or can it be that you just pay the claimant the same amount each month as set out by the judgement as I would imagine they are both repayment terms then how can statutory interest be suspended and more to the point who decides that.

Edited November 2, 2010 by the tinkerman

[sequenci]

but as above in both cases if it IS covered by the Consumer Credit Act even if it is over 5k then surely interest is not payable

 

 

Post-judgment *Statutory* interest can not be added CANNOT be added to CCA regulated debts of ANY amount. The creditor could add post-judgment contracual interest so long as the terms & conditions allow for it AND the creditor makes you aware that this is what they are doing.

 

The Consumer Credit Act 2006 states:

 

•Where the agreement permits the creditor to charge post-judgment contractual interest, the creditor must give notice of their intention to do this and provide further notices every six months.

•Post-judgment contractual interest can be charged from the date the first notice was given.

•The notices must include prescribed information

•Non-compliance would mean that not post-judgment interest can be charged until notice has been given

[the tinkerman]

Do you concur with my latest post or not Biggjb or have you got a different take on the matter.

 

Also any advice on how the Stat interest can be suspended!

[Guest]

..........Also any advice on how the Stat interest can be suspended!

 

Nat.debtline suggests that a TimeOrder could poss be used to try and get any interest stopped?