Statutory Interest on CCJ

[sadiedusty]

Hi, really hoping somebody can help me as getting very confused.

 

I have a CCJ which ordered payment of the full amount - around £14k.

 

The CCJ allowed statutory interest to be applied.

 

To cut a long story short, following bad advice from a solicitor this now stands at £23k.

 

I applied on an N245 to repay in installments and attended court where the judge ruled I could repay at £500 a month.

 

The wording on the judgement says 'the defendant do pay the balance of the judgement debt at the rate of £500 per month'.

 

Does this mean that I now repay only what the balance was at the date of the ruling

or can the creditor still continue to apply statutory interest?

 

And if they can,is there anything I can do about it?

 

Thanks in advance for any help with this.

[Guest]

statutory post judgment interest? is the matter consumer credit act regulated? if so, then there should be no post judgment statutory int.

Edited March 29, 2013 by Ford

[sadiedusty]

Hi, no not consumer credit regulated unfortunately.

 

I indemnified my former business partner against having to repay any of our business overdraft.

 

We didn't part amicably, the bank came after him for half of it,

and despite the indemnity he paid half of it without my knowledge

and now is demanding repayment from me.

 

He got a CCJ and I couldn't afford to repay in full

-I knew nothing of court processes,relied on my solicitor,

and now a year later,

having sought alternative advise,

submitted the n245 and got the order to pay by installments.

 

All this time I've been paying interest at 8%

but confused as to whether now the judge has ruled that I pay 'the balance'

I'm still liable for interest until I repay the full amount?

 

My solicitors never given me a copy of the original judgement.

[Guest]

get a copy of the judgment, and any docs, if not from the sols then via the court.

from what you say, it seems that you paid half and he paid half. and then he claimed that half that he paid from you re the indemnity and got judgment for that including post J stat interest? you had an instructed a sol throughout. is that correct? 'the balance'? balance of what? you would only be liable for the ccj against you. if you feel that your sol has not acted appropriately then could complain in the first instance to them and/or their regulatory authority.

Edited March 31, 2013 by Ford

[sadiedusty]

Thanks Ford,

will definitely get a copy of original judgement.

 

The balance,

because of my solicitor.

has gone up nearly £10k from what the original CCJ was for.

 

I trusted him and just followed his advice,

being totally new to this kind of thing-

he tried to make a settlement for payment by installments out of court

-I had no idea about being able to do it through the court

-my total ignorance unfortunately has cost me dearly and the other guy's solicitor has slapped a default costs certificate on top of the CCJ.

 

When I did find out about the N245, and questioned my sol as to why he didn't tell me,

he said 'I thought you wanted a bit of a bante' between you and the other guy'- unbelievable!!!!

 

So will also be following your advice and complaining to him,

and then if necessary I assume I go to the ombudsman?

[dx100uk]

unless the judgment SPECIFICALLY states post judgmental int

 

then it cannot be charged

 

dx

[steampowered]

There must be more to this.

 

The other side can only get a default costs certificate if you miss the deadline for serving your "points of dispute".

 

The fact that your solicitor said you wanted a battle but then failed to actually dispute the costs does not make any sense.

 

You would have received a "Notice of Commencement" which clearly sets out what costs they are claiming

and the date on which you must serve points of dispute,

and that if you miss the date they will be entitled to a DFC.

 

Why was this deadline missed?

 

Did you apply to set aside the DCC?

 

If not, why not?

 

Perhaps we can help you make the application now so that you can contest the costs if the DCC was very recent?

 

To answer your question,

unfortunately I think you are liable for the full whack.

 

Statutory interest was specifically mentioned in the original judgment.

 

I think the term "judgment debt" is wide enough to cover anything you were ordered to pay under the original judgment,

 

"judgment debt" is not the same thing as "credit card debt".

[debbbbsy]

Post judgement interest can only be applied if an agreement existed which included a post judgment interest clause.

 

 

I indemnified my former business partner against having to repay any of our business overdraft.

We didn't part amicably, the bank came after him for half of it,

and despite the indemnity he paid half of it without my knowledge

and now is demanding repayment from me.

 

It all depends on the contract you signed with him.

 

Had the bank come after you directly, Consumer law specifically prohibits the application of post judgment interest to overdraft debts.

 

To answer your question, unfortunately I think you are liable for the full whack. Statutory interest was specifically mentioned in the original judgment. I think the term "judgment debt" is wide enough to cover anything you were ordered to pay under the original judgment, "judgment debt" is not the same thing as "credit card debt".

 

WRONG ADVICE. The Judgdment debt is the amount owing at the time the judgment is granted regardless of the type of debt.

 

For PJI to be applied, the claimant must when serving a Default Notice, refer to what type of debt it is, the agreement which regulates it and specifically if PJI will be applied.

 

The agreement between the claimant and plaintiff referred to and relied upon to enforce judgement must contain a PJI Clause, and finally it must be specifically mentioned in the POC.

 

You did not ask him to pay this overdraft debt, had the bank come after you the CCJ would be frozen, no further interest applied.

I would therefore consider it unfair for him to impose interest on this debt.

 

Challenge it.

 

Debbie x

[steampowered]

WRONG ADVICE. The Judgdment debt is the amount owing at the time the judgment is granted regardless of the type of debt.

 

Please could you explain the basis for this? If you are right, then the court overturned the original judgment when it set montly payments, which would be very strange.

 

The definitions I can find are all something like "the amount of money in a judgment award to the winning party, which is owed to the winner by the losing party". The court granted judgment against the Op for the original debt plus interest plus costs. Perhaps I am missing something but I don't really understand why you think the term "judgment debt" would be restricted to only part of what the claimant was awarded in the judgment.

 

If there are valid reasons why the claimant should not have been awarded interest, it seems to me that the Op should be appealing or applying to set-aside the first judgment. This will be very difficult if he did not raise these objections in the original proceedings.