New boy. Has anyone claimed above the £5000 limit?

[steve793]

Hi, my first foray and message! I'm helping a friend who has a business (sole trader) and who has put in a claim for c£7500 all through one account ie above the small claims threshold. Hence, claim cannot (I assume) be split into separate claims for lesser amounts.

 

Accept court action/defence unlikely but A&L will undoubdetdly try it on with any refund limited to £5k knowing this, can anyone offer any advice/guidance please? Any offers of help gratefully received, I suspect this will prove tricky given A&Ls track record from your forum!

 

The initial letter sent was using the moneysavingexpert template, hadn't found you then! The 14 day limit has expired without response, so could do with a quick reply if poss! Thanks.

[sea-sidelady]

If it is a business account then its worth reading this...

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/64975-business-claims-basic-guide.html

[steve793]

Many thanks sea-sidelady, I did have a peruse of this info but given that the initial claim for c£7500 has already gone in, it seems we can only follow up with the 14 day red threatener at this stage.

 

Also, looking at the £5k limit messages,whilst it sems there are advantages splitting, the moderator states clearly that the advice for the site is not to split it. Given it's well over £5k, will this automatically preclude SCC involvement, even tho' at the judge's discretion? My friend will be alarmed at the potential court charges, even tho' it's unlikely A&L will appear.

[ladybird17]

just bear in mind that if it's only the interest component that puts it over £5k, then it can still go small claims.

 

IMHO you need to have a very good and justifiable reason for splitting claims, and if it is well over the limit you may have to bite the bullet. However, there does seem to be a few cases of larger claims being schedule to the SCC as some judges do seem to realise that although the amount is larger, the principles remain the same.

[steve793]

Thanks ladybird, we haven't included interest at this stage given the size of the initial sum! Presumably if successful, the judge will add this anyway? The original letter via moneysavingexpert gave the option of interest/no interest letters, so went for the latter to avoid over-egging things.

 

Your second point makes sense, this is my gut feel too.

[ladybird17]

You can add 8% statutory interest on at the court stage

[steve793]

Thanks ladybird, confirmation useful. I'm still familiarising myself with all the Q&As etc but if A&L back out pre court, can we stick in a retro claim for the interest in the vague expectation that they'll cough up? Could generate a further action all of it's own I guess!

[ladybird17]

Hmm, I think you should have claimed the contractual interest from day one - and as far as the 8% (statutory) interest goes that is at the discretion of the court - so A & L would have no obligation to pay this. If you went for the interest after a settlement I would think the courts would consider you a vexatious litigant and throw it out.

 

That's what I THINK - but it's not necessarilly correct!!

[steve793]

Thanks, sorry for the delay. I think as the claim was pretty chunky already, my friend didn't want to push her luck or the figure too far above the £5k limit, although clearly it's totally admissable.

 

I take your comments on board! Be interesting to follow the Lloyds "victory" to see what happens, although CGA's views today are that an appeal will win the day.