Can Claimant claim for Interest later if not claimed on claim

[IWanttobeFree]

I have just received claim form for a CC debt of about £4,400 from 2009 and they have claimed interest for 6 months + upto the date of judgement, but no mention of going forward.

 

I don't mind paying them original amount in instalments

but I am worried that if I accept the claim as it is then they may ask the judge for 8% interest until the debt clears,

which may mean the payments I make will just pay off interest.

 

Someone has told me that if I defend the case by asking them to prove the debt then they are likely to concentrate on proving the debt and not ask for interest going forward. But if I accept debt at the first stage then they are most likely to ask the judge to add 8% interest. Is this correct assumption?

 

But I know that if I defend then I will be slapped about a £1,000 in further legal costs. What could be the best course of action in this case?

 

Is there an argument against paying interest of 8%, which I may be able to use?

 

I will be grateful for your comments.

[dx100uk]

totally wrong way to go about it ..

 

you've received a claimform

please complete this:

 

https://www.consumeractiongroup.co.uk/forum/showthread.php?419198-You-have-received-a-Claim-What-you-need-to-do.-**UPDATED-2016**

 

if the debt is from 2009 then its SB'd unless you've been paying someone recently

[AndyOrch]

You pay what the total claim states bottom right of the form...that already includes costs and 8% section 69 interest.

There is no further interest as the amount is less than 5K

 

If you do not defend the claim they will get a default judgment...you get a CCJ.

 

Andy

[dx100uk]

throw the morality card of 'owing the debt'

out the window too..

 

if you did owe it think about this..

 

why did a multinational creditor sell the debt on to a debt buyer/DCA for

and not take you to court themselves IF you DID owe this supposed debt...

[IWanttobeFree]

I am grateful for your replies, and thank you Andyorch for answering the central question

- that if I accept the claim and pay them in installments then can the claimant get 8% interest for the period from judgement until it clears.

 

You said, they cannot claim statutory interest because the debt is less than 5K.

But I heard differently from the judge when I attended the hearing for another judgement over a year ago.

 

The judge seemed to suggest to claimant's lawyer who asked for interest for just 1 year in their claim,

"You have restricted yourself to 1 year's interest, but I generally would award 1% if asked for (until the debt clears)."

The debt in that cases was less than 5K.

 

This to me seems that if the claimant asks for interest going forward until defendant clears the debt, then it will be awarded.

I fear this as installments I can afford may only be used for paying 8% interest on that sum, and I will end up in a debt trap.

You said that they cannot claim interest if debt is less than 5K - is this in CPR?

If yes, then do you happen to know the section?

 

Yes,

I am owning up to this debt as I mentioned in my original post,

but I am just worried about 8% interest going forward, and was seeking some guidance on this.

 

There was some confusion, I think I should have made it clear that the debt start date was 2009, but default was 2015.

 

Thanks

[dx100uk]

https://www.consumeractiongroup.co.uk/forum/showthread.php?371753-Statutory-interest-applied-to-judgement-debt

[dx100uk]

why are you not defending the claim?

you've nothing to lose twill be the same outcome as if you cough up now.

just settle by a tomlin order

 

can you not fill that link in in post 2

then we'll know what we need too to properly advise

 

dx

[AndyOrch]

I am grateful for your replies, and thank you Andyorch for answering the central question

- that if I accept the claim and pay them in installments then can the claimant get 8% interest for the period from judgement until it clears.

 

Depends how their particulars are worded...normally its 8% section 69 interest up until judgment...not until it clears...otherwise you then enter into Post Judgment interest...which a separate claim would have to be raised.

 

You said, they cannot claim statutory interest because the debt is less than 5K. No I said they cant claim interest post Judgment......and only claims over 5K can attract post judgment interest and only if the agreement allows for it in their T&Cs

But I heard differently from the judge when I attended the hearing for another judgement over a year ago. He is wrong or you have misunderstood

 

The judge seemed to suggest to claimant's lawyer who asked for interest for just 1 year in their claim,

"You have restricted yourself to 1 year's interest, but I generally would award 1% if asked for (until the debt clears)."

The debt in that cases was less than 5K.

 

If it was an agreement pursuant to CCA974 then he was wrong...it is normal to claim 1 years section 69 interest on money claims

 

This to me seems that if the claimant asks for interest going forward until defendant clears the debt, then it will be awarded. No it wont ..once a claimant attains judgment thats the final figure you owe..... it cant keep changing...a judgment is a conclusion of the debt

 

I fear this as installments I can afford may only be used for paying 8% interest on that sum, and I will end up in a debt trap.

You said that they cannot claim interest if debt is less than 5K - is this in CPR? Post Judgment interest...they can claim section 69 interest (pre judgment interest)...normal for 1 year as already stated

 

Refer to section 35A of the Supreme Court Act 1981, and its county court equivalent, section 69 of theCounty Courts Act 1984.

 

If yes, then do you happen to know the section? See above

 

Yes,

I am owning up to this debt as I mentioned in my original post,

but I am just worried about 8% interest going forward, and was seeking some guidance on this.

 

There was some confusion, I think I should have made it clear that the debt start date was 2009, but default was 2015.

 

Thanks

 

I think your only confusion is Pre and Post Judgment interest...section 69 interest is up until judgment....Post Judgment is subject to the debt being over 5K and that the credit agreement in its T&Cs allows for it...which is very rare and I have yet to see an agreement that does.

 

Andy