Dca adding 8% statutory interest to old ccj, anyone know the law on this please

[The Tinkerman]

Hi All
Can anyone shed any light on this please,

Is this the law that DCA or OC use to add statutory interest after judgement
The Late Payment of Commercial Debts (Interest) Act 1998
or is there a different law for DCA and OC.

If it is the same law they use, then as I see it they can only apply statutory
interest it if it states so in the Original Terms & Conditions of your agreement
please correct me if I am wrong.


Further more The Late Payment of Commercial Debts (Interest) Act 1998 THEN GOES ONTO STATE!
"This Act came into force in 1998 as amended in 2002 to provide some measures of relief for companies of all sizes. The provisions of the Act allow UK businesses, for all contracts created on or after 7 August 2002 , to charge interest on late payments and debt recovery costs for clients and customers that have exceeded payment terms agreed by the parties.
The effect of this legislation allows businesses to charge 8% above the Bank of England base rate set on a twice-yearly basis and debt recovery compensation of up to £100 on each overdue order"

SO
would you agree from the above that if your Original CCA was before the 7 August 2002 then neither a DCA or an OC should be adding Statutory interest after judgement .


Any clarification on this would be much appreciated

[Curlyben]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

Really depends on what the actual judgement allows for.
Mostly the interest is frozen at the point of judgement, so adding ANYTHING is, at best, unlawful and possibly worse.

Also since when are unsecured debts Commercial, so where does this law come into it ?

CONSUMER Credit is NOT a commercial debt, no matter how you look at it.

[Amethyst]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

Is this related to your other thread Tinkerman ? Is the 8% statutory or contractual interest ? What does the judgment order say on the subject ? How much is the CCJ?

Stat interest (currently 8% simple interest) is County Courts Act 1984 s.69

County Courts (Interest on Judgment Debts) Order 1991 (SI 1991 No 1184). The order excludes a range of cases from judgment
interest, including suspended orders for possession, debts regulated by the Consumer Credit
Act 1974 and maintenance payments (except for lump sums of £5,000 or more).

2. In article 1(2) of the County Courts (Interest on Judgment Debts) Order 1991(1) the following definition of “relevant judgment” shall be substituted:

““relevant judgment” means a judgment or order of a county court for the payment of a sum of money (a) of not less than £5,000 or (b) in respect of a debt which is a qualifying debt for the purposes of the Late Payment of Commercial Debts (Interest) Act 1998(2) and, in relation to a judgment debt, means the judgment or order which gives rise to the judgment debt.”.

(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(1);

[Curlyben]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

This is a VERY important part as well

County Courts (Interest on Judgment Debts) Order 1991 (SI 1991 No 1184). The order excludes a range of cases from judgment
interest, including suspended orders for possession, debts regulated by the Consumer Credit Act 1974 and maintenance payments (except for lump sums of £5,000 or more).

[The Tinkerman]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

Hi AME & Curlyben

The judgement back in Sept 2000 states " it is therefore ordered that you must pay £11600 for debt ( and interest to date of judgement ) and £370 for costs,

You must pay the claimant a total of £11970 by instalments of £5 per month".


Then at the bottom at the left hand side in a box it states

Notes for the Defendant.

Along with other jargon it says

If Judgement is for £5000 or more or is in respect of a debt that attracts contractual
or statutory interest for late payment the claimant maybe entitled to further interest.

As far as I am aware there could not have been any interest being applied to this CCJ debt until it was sold to the now DCA back in 2002 as it was sold for £11800 so the debt must have been reducing and I never received anything from the OC or their solicitor after the judgement to say any more interest was being added.

But then I received a letter from the DCA in Oct 04 stating

We clarify where a judgement has been secured with a minimum balance of £5000 the Court permits a statutory rate of interest to be applied to the account from the date of the County Court Judgement at the rate of 8% per annum, Hence the debt now stands today at £21000

So were would you say I stand on this and what is the difference between statutory and contractual interest.

I have to go back to Court next month if I want to Challenge this, and when I was in Court earlier on this month I got the impression the Judge though they had a right to collect this statutory interest, but then again that is one of the reasons it is going back to Court because the Judge said he was not given any time to read the notes and my evidence was based on as he called them " TECHNICALITIES "! so really I need hard facts here if I am to succeed.

[Curlyben]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

No technicality here.
IF interest was applicable it WOULD of been mentioned in the actual judgement and NOT simply refereed to in the templated notes.

Basically the DCA can feck orf.
You might need to remind the judge of the order quoted and highlighted above.
I assume this is a CCA debt.

[The Tinkerman]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

You see my CCJ was for 12k so you would assume as AME posted it comes under the Late Payment of Commercial Debts (Interest) Act 1998(2) but in saying that my original CCA was before 7th Aug 2002 when it was amended as below,

"This Act came into force in 1998 as amended in 2002 to provide some measures of relief for companies of all sizes. The provisions of the Act allow UK businesses, for all contracts created on or after 7 August 2002 , to charge interest on late payments and debt recovery costs for clients and customers that have exceeded payment terms agreed by the parties.
The effect of this legislation allows businesses to charge 8% above the Bank of England base rate set on a twice-yearly basis and debt recovery compensation of up to £100 on each overdue order"


so one would assume by that statutory interest after judgement could only be applied to any CCA after The 7th of Aug 2002 am I correct.

[The Tinkerman]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

Tis a CCA debt

and thanks for that,

The Judge even asked me did I want to waver my rights to challenge this along with other so called technicalities, seemed to me he just wanted it over and done with as did their solicitor and my bum began to twitch and I nearly buckled under the pressure but I stood my ground and will go into round three with a bit more nous thanks to your good self and Ame.

How are you on Assignment Law Curlyben, if you have a couple of hours spare to read my post on re LEGALITY OF ASSIGNMENTS & ON INTEREST AFTER JUDGEMENT

If not thanks again and to Ame.

[Amethyst]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

Clarification for my own sanity if poss...

Stat interest s.69 - can it be added to claims for debts which were regulated under the CCA but are now terminated (hence being in court for the full shebang) when there is no clause in the agreement to allow post judgment interest ? a) under £5k b) over £5k

Thanks.(and apologies for silly question)

[The Tinkerman]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

Sorry Ame probably me being thick here

but what do you mean by Stat interest s.69 - can it be added to claims for debts which were regulated under the CCA but are now terminated

[Curlyben]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

Terminated or not it is STILL regulated by CCA.

I'm not sure where you are getting this information about commercial debt from, other than mis-information from a DCA.

[The Tinkerman]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

Do you mean because the debt is subject to a CCJ
that do you lose your rights under the CCA.
------------------------------- merged -------------------------------
Sorry Curlyben

I was clutching at straws re the Late Payment of Commercial Debts (Interest) Act 1998(2
you and Ame have since pointed me in the right direction as regards the correct law on statutory interest.

[The Tinkerman]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

As like Ame Clarification for my own sanity if poss


The County Courts (Interest on Judgment Debts) Order 1991 (SI 1991 No 1184)

If the figure IS more than £5000 that you have a CCJ for, but your Original agreement is regulated by the CCA then they can go and WHISTLE !!!!

As I cannot see anything appertaining in the County Courts (Interest on Judgment Debts) Order 1991 (SI 1991 No 1184) relating to debts over £5000 unless I have missed something.

[Amethyst]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

yep was ignoring the commercial debts bit, just confused myself on another thread. ( Legal Beagles Consumer Forum ) for a change.

So, s.69 isnt applicable to any debt regulated by the CCA.

That right ?

[Curlyben]

Re: Dca adding 8% statutory interest to old ccj, anyone know the law on this please

UNLESS clearly specified by Judgement