A customer who had been taken to court prior to being in a debt management plan, contacted Credit and Loan Management Ltd for advice. The creditor had obtained a county court judgement against the customer, but was adding on post judgement interest. This meant the balance was increasing.
Credit and Loan Management Ltd recommended the customer make a formal complaint.
Credit and Loan Management Ltd drafted the complaint letter, stating the customer believed the debt collection company was not managing the account as per the Terms & Conditions of the credit card agreement by adding post judgment interest.
The customer requested the debt collection company either provide a copy of the signed agreement containing the clause which legally allows them to add post judgement interest or remove all the post judgement interest immediately and to confirm in writing that this has been done.
If the debt collection company does not comply, they could be acting illegally and a complaint could then be forwarded to (FOS) Financial Ombudsman Service.
We await the debt collection company’s decision.
If you're having post judgement added to a county court judgement or any other debt problems. Post a comment on the blog or telephone Credit and Loan Management Ltd for free advice on 0800 0727 844, we will be happy to help.
Before I got divorced and became a single mum to my disabled son we took out a loan for a new kitchen. Since then the above happenend and i could not afford to pay the bank back. They sold the debt to another company, which subsequently took me to court. The work was carried out for my disabled son and in such Income Support is paying a fixed amount each week to this company. but they are still charging me a post judgement interest of 21%, they have tried to take me to court again to put this on the house but the judge said no. But i am no nearer paying this debt and approx £1100 in interest is going on a now £11K debt each 6 months. Can you help
ReplyDeleteA possible avenue could be to make a complaint, basically challenging the companies’ right to charge post judgment interest. There allegedly has to be a clause in the signed agreement giving a provision to charge post judgment interest. If that complaint is rejected it could be escalated to the financial ombudsman to see what they say. It would only cost the price of a stamp. For more help and information please contact us direct questions@creditandloan.co.uk
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