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Link Financial 24.09% Interest!


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Hi everyone,

 

I really hope someone can help me, as I feel like this company is trying to bury me :(

 

I've just lost a court case against Link, with a CCJ against me for about £12000. On delivering his verdict the Judge asked the Claimant's solicitor whether they wished to charge any further interest, to which they replied 'No'.....

 

Got home today, and lo and behold they intend to charge me 24.09% per annum variable. How can they do this? Is it legal? There's no way I can pay £12000 all at once.... Would the court papers show that they didn't ask for interest when asked?

 

Please help somebody as I feel really down about this whole thing...

 

Cheers,

Skinnycat

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It will state on the judgement what if any interest can be added. If it doesn't mention it then they can't add it or anything else.

 

If you cannot afford the repayment terms stated in the judgement you can ask for a redetermination hearing.

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Vir prudens non contra ventum mingit

 

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Thanks Cerberusalert,

 

The judgement includes no mention of any interest to be added, but does not include any repayment terms either. Should that have been something discussed at court at the time of the hearing, as I thought repayment terms would be agreed afterwards?

 

Many thanks,

 

Skinnycat

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Hi everybody,

 

Does anyone have any thoughts on this, is there a legal limit to the rate of interest that a DCA can charge?

 

I recall there being an 8.5% acceptable rate that courts tended to be happy with, am I mistaken?

 

Thanks,

Skinnycat

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if you cannot afford the £12000 in payment then adding any! interest is futile.wait to see what the payment plan is ,if you cannot afford it ,go back to court and tell them what you can afford.

then tell the judge that adding interest is just adding to the debt.

good luck

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Was this a 'forthwith' judgement? Did you defend the claim? Do you own a property?

 

Knowing Link they will have gone for a forthwith judgment and, if you don't own a property, they may generously agree to accept repayment in instalments at a ridiculous interest rate not sanctioned by the court.

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Did Link own the debt? who was the original creditor? when was the debt from? what kind of debt was it? as in credit card? loan etc? Did Link produce any agreements in court?

Did you defend the action and so on?

I reside in Dawlish Warren but am not a rabbit.

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Funny you should mention cerberusalert about the interest I'm of the same opinion as yourself regarding this issue but I had a discussion with Biggjb about this on thread http://www.consumeractiongroup.co.uk/forum/showthread.php?280831-Need-advice-re-Merit-Finance and he reckons that You don't have to ask the judge for Stat interest it on debts over £5k. you can just apply it as that is legal.

 

In reply I quoted the following:

 

Hope this is useful for you skinnycat.

 

for eg http://www.insolvencyhelpline.co .uk/...unty_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.'

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

 

 

 

Civil Proc. Rule 70, 6 states that 'The County Courts (interest on Judgment Debts) Order 1991 specifies when interest may be claimed on county court judgment debts.)'

 

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..............

 

 

http://www.statutelaw.gov.uk/legResu...=1&SortAlpha=0

 

The general rule

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

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

(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 F2 ;

 

 

 

So a creditor can try for CONTRACTUAL but not STATUTORY interest.

 

 

Statutory interest does not accrue on an CCA regulated agreement that has been the subject of a CCJ. However, if there's a clause in the CCA agreement allowing for post contractual interest this can be added.

 

If the terms of the CCJ do not allow for contractual interest then the creditor would have to sue again for interest once the original CCJ amount has been paid.

 

 

Any debt regulated under the Consumer Credit Act cannot have statutory interest added on after judgment. However, if in the original application the creditor asked for contractual interest then this can happen.

 

worth a listen.

 

http://www.bbc.co.uk/radio4/youandyo...8_10_mon.shtml

 

AND I WOULD IMAGINE MOST LOANS AND CREDIT CARD DEBTS ARE COVERED BY THE CONSUMER CREDIT ACT 1974

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  • 2 weeks later...

Hi everyone,

 

Thanks so much for your input, but must admit that I'm still a little baffled by it all. :oops:

 

I defended the action by Link on a number of points (defective Default Notice, invalid assignment etc) but the judge felt that neither of these points was sufficient to turn the case in my favour.

 

The debt was regulated by the Consumer Credit Act 1974, so that leads to me to think that Link cannot charge statutory interest on the amount owing. Given that the judgement also does not state that interest can be applied, I would think that rules out any contractual interest, unless Link sue me once the debt has been paid off? Am I right in thinking that?

 

Link have now stated that they will be asking for a charging order on my property. Will the court notify me if this takes place so that I can defend against it? Given that I have a mortgage and secured loan, and that the property is registered to both me and my wife (who isn't included in the Link action) I would hope it wouldn't be granted. I have offered to make payment towards the outstanding amount, with no response from Link, so am baffled as to what they are hoping to achieve. They couldn't sell my property from under me, could they?

 

Skinnycat

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I would of thought that the only way a charging order would be granted is if you miss a payment on your ccj? To get round that simply set up a standing order to hit their account

before the due date each month (allowing for bank mishaps etc)

 

Having said that, if you think there is an error in law with the original judgment you have the grounds to appeal the CCJ and by what you have posted there may be something there

for you to go back to them. The problem is Link, they are in my opinion a bunch of crooks who go for these judgements on very thin documentation and hope that they can

persuade a judge in their favour. If I were you I would post some more here and then seek professional advice re your grounds for appeal.

I reside in Dawlish Warren but am not a rabbit.

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Unfortunately I received an order from the court on Friday stating that an interim charging order had been granted against my property, with a hearing scheduled for February. I'm not sure if I've missed something here; after the judgement I expected the court to ask me about my circumstances (that was what I was told by Link's counsel) and agree a payment plan, but I haven't even had that opportunity!

 

Maybe I've been naive in all of this and thought that this whole process would protect me, but I feel like this whole thing has been railroaded through without even the court giving me an opportunity to comment.

 

I want to grab the bull by the horns with this but where do I start?

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Did you make an offer to pay anything when the original ccj was awarded against you etc?

 

I guess it tells you on the interim order that you have a limited amount of time to respond to it? 7 days etc?

 

It may be that this post needs moving to the legal section, I'll post it up for a member of the site team to have a look at.

 

I am no expert but it seems Link have again used the system and a debtors naivety to again gain a charge...Link rarely seem to

have the correct paperwork such as credit agreements but instead rely on the system to get things put into place.

 

Go here, there is room for manouvere and to possibly get the order removed etc....

 

http://www.yesdebtfree.co.uk/articles/how-to-stop-a-charging-order/

I reside in Dawlish Warren but am not a rabbit.

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  • 8 months later...

Hi AllJust a quick one about Link and interest charges. I had a debt with GE Capital Woodchester (incurred due to being self-employed and becoming seriously ill) which apparently was sold to Link. I had several debts which were being paid under a DMP run by Payplan. Two parts of the original debt to GE remain. I have paid the rest off. Link financial are continually refusing Paypal's offers in regard to these debts and they are charging interest. My query is this: When I incurred the original debt GE Capital repossessed the property the loan was used to buy. They auctioned this property and took the proceeds off the original amount. This original amount included the interest I would have paid in the 3 year life of the finance. So effectively what they did was take the original finance amount, added the interest that I would have paid and used that as the amount I owed. Now, if Link are charging contractual interest, what are they charging it on and is this legal? surely I have (or am) fulfilling my contractual interest obligation by paying off the debt which has had the interest payments front-loaded? Are they charging interest on interest?I'm not sure I've explained this very well but I hope you get the gist!Hulsim1

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