Paragon and post judgemental interest

[Andyc123]

Hi

I have the same sort of problem with Paragon Finance. 20 years ago I took a loan out for £7k, got into difficulty got took to court with the debt at £4700. This was cleared by an attachement of earnings last year. Now they are trying to say that I still owe £16k in interest and they are allowed to do this as the original finance agreement says they can. I have responded by saying that any debt below £5k is statute barred from interest and for them to claim interest they would have to return to court to request interest. They have said they do not have to and have quoted a court case OFT v First National. HELP what is my next step

[paulwlton]

Hi

I have the same sort of problem with Paragon Finance. 20 years ago I took a loan out for £7k, got into difficulty got took to court with the debt at £4700. This was cleared by an attachement of earnings last year. Now they are trying to say that I still owe £16k in interest and they are allowed to do this as the original finance agreement says they can. I have responded by saying that any debt below £5k is statute barred from interest and for them to claim interest they would have to return to court to request interest. They have said they do not have to and have quoted a court case OFT v First National. HELP what is my next step

 

You have paid the judgment amount set by the court then Paragon would have to take you back to court and sue you again.

 

Send a CCA section 77 request this will enable you to see if there was an interest after judgment clause, if they can't provide the agreement then they would be foolish to take the matter back to court.

[Dial Square]

Quote:

Originally Posted by Andyc123

Hi

I have the same sort of problem with Paragon Finance. 20 years ago I took a loan out for £7k, got into difficulty got took to court with the debt at £4700. This was cleared by an attachement of earnings last year. Now they are trying to say that I still owe £16k in interest and they are allowed to do this as the original finance agreement says they can. I have responded by saying that any debt below £5k is statute barred from interest and for them to claim interest they would have to return to court to request interest. They have said they do not have to and have quoted a court case OFT v First National. HELP what is my next step

 

 

I too was in the same situation as you are now.

To cut a long story short, I have had a CCJ with Paragon for over 7 years on a loan taken out in 1995 which I had been paying at a reduced rate every month. I, like many others, were led to believe the interest had been frozen. I requested the outstanding balance last year with a view to settle in full. Paragon advised by letter that my Judgment Balance was £800 but the Contract Balance was over £10,000! I rang them to ask what this extra was to be told that it was in respect of interest and charges which came as quite a surprise considering the balance left was more than the original loan! I sent a cheque for the Judgement balance in full and final settlement which Paragon banked. I then continued to receive letters and phone calls chasing for settlement of the interest. I contacted the CAB who provided me with some great information (Paragon had not selected the correct judgment at the outset and a second action could also constitute an abuse of process, due to the combined effect of certain CPR rules). I sent a letter of complaint mentioning this together with their lack of transparency. I received a letter from Paragon in response to this advising that due to my original loan agreement they can actually charge this interest but as a gesture of goodwill they have now closed my account and I have no further liability!

What nice people they are!!!!

 

I would advise anyone having difficulties with this lot to keep fighting. Use the CAB if necessary who I found to be invaluable and the advice on here is really helpful too.