2 General questions.

[1stlifeline]

1.

When you choose to defend a claim I know there is the fast track fee to pay, but, can you end up with thousands added to your orig debt because of the other sides fees if you lose?.

2.

Im sure I have seen a template letter on here for using to ask a creditor to put a hold on the interest. I cant seem to find it now, can someone point me in the right direction please.

 

Many thanks

[Michael Browne]

DCA template letters here:

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html#post162353

[1stlifeline]

Thank you very much Michael.

[Bookworm]

Are you asking questions AGAIN? Seen any cows today?

 

1) defending a claim and fast track - that depends on whether the judge allocates to fast track or not, it is unlikely if the claim is for less than £5k. I'm not sure I understand the question, do you mean if you defend and go to court as opposed to accepting that you owe the money on receipt of the claim?

 

2) One of them lot? http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

[Bookworm]

Oh, that's nice, that is, I bust my donkey lookin for the info and typing it slowly, Mr Browne swoops in with his ready-made answers and gets all the thanks. Typical.

[1stlifeline]

Ah BW, I appreciate your efforts however slowly you type. In spite of the fact that you dont know a cows a==e from its elbow you are very very good with the advice on here. (Grovel over for today!)

 

What I mean by question 2 is :- We are defending a claim but have had a letter saying if we continue we will be clobbered with a lot of extra costs, only they put it in a bit better english than that. I just wondered, if we lose is it a likely outcome that the other sides costs could add a MASSIVE increase to the orig debt?

[Michael Browne]

Oh, that's nice, that is, I bust my donkey lookin for the info and typing it slowly, Mr Browne swoops in with his ready-made answers and gets all the thanks. Typical.

Yeah, but I left the easy question for you to answer :grin:

[Bookworm]

What I mean by question 2 is :- We are defending a claim but have had a letter saying if we continue we will be clobbered with a lot of extra costs, only they put it in a bit better english than that. I just wondered, if we lose is it a likely outcome that the other sides costs could add a MASSIVE increase to the orig debt?

 

Ach so.

 

Well, to coin a phrase, they would say that, wouldn't they?

 

Ok, assuming that the case is allocated to small claims, then the solicitors' fixed charges should be added to the claim form, so you'd know how much that is anyway, and they can't just clobber you with huge charges for issuing a fairly standard N1 and depend on the value of the claim, those vary from £0 (if claim is below £25) up to £90. That is if the claim is for a fixed value. If it is "to be assessed", and they were to win by default then those fixed costs will vary from when they are awarded, from £22 in default of defence to £175 in case of summary judgment or case struck out (you might need to check the figures are still accurate, my Patricia Pearl is a couple of years old and the fees might have increased, but it shouldn't be by much).

 

However, following allocation to small claims, the "no costs" rule applies. Basic principles are that legal costs are not recoverable by the winner. The rules allow for the winner to be reimbursed for court fees (including AQ fee), the fixed costs shown on the summons if a solicitor issued the form, or up to £260 if it is an injunction case, expert fees up to £200 (unlikely to happen if in a debt case!), expenses incurred by the party and witnesses, incl reasonable costs of staying away from home to attend the hearing, and loss of earnings for the parties and any witnesses (this is really more for a particular v particular case, unlikely to apply in a company v particular case). Any award for cost is discretionary however, and it will be the judge's decision to award any expenses or not.

 

So short answer is no, you shouldn't end up with a massive increase in the debt if you lose. And of course, if you don't lose, they can go and wave to the cows on the side of the road.

 

If the case were to go to fast track, though, it's a different kettle of fish and costs could indeed run into hundreds and thousands, but how big is the debt here? Is it likely to be allocated higher than SCC?

[Michael Browne]

There is a scale for costs in fast track dependant on the value of the claim, but CPR 46.3 allows for a greater (or lesser) amount to be awarded

 

See here:

PART 46 - FAST TRACK TRIAL COSTS