Hi again, sought some legal advice last Thursday,did'nt really help much solicitor could not tell me anything that i have not learnt from this amazing font of all knowledge website. On Saturday i received a 7 day formal notice (by registered post) from Eversh*ts of their "intention to issue a claim" against me in the Cardiff County Court. They have also advised me that interest will be added to the £45,743.41 at 8% per annum from the date of sale of the property persuant to Section 69 of the County Courts Act 1984 plus costs. Could someone please give me some information on this Act ? Regards, Gary.

-- Gary Parton (garydparton@blueyonder.co.uk), June 11, 2001

Answers

Surely they are bluffing? "Intention to issue...?" What on earth is that? Harrassment I'd say at this point. I thought they had already issued proceedings which is why you had notice it was going to be in Cardiff? Interest at 8% would bump the debt to a most ridiculous level and you would *never* be in a position to pay it - bankruptcy would then be the obvious solution and they'll get nothing anyway. They are not being at all reasonable, and I would hope the Court will agree. I will look up the CC Act 1984 and post again if one of the more knowledgeable posters doesn't beat me to it.

-- Too scared to say (iwasduped@yahoo.com), June 11, 2001.

A person you owe money to is entitled to add interest on the debt, and the current interest rate is 8% - that rate is set by the court. Any person/company who issues a claim through the county court will have this generic piece of text added to the claim.

It is possible for the judge to refuse interest, that will come at the hearing. If you get a summons then defend it.

As to costs, all I know that is some types of summons have a fixed rate for solicitors costs, others the full amount. You can get more information on costs in a court leaflet which you can download from the court service website - www.courtservice.gov.uk

-- pendle (pendle@amun-ra.demon.co.uk), June 12, 2001.

I had the lender agree to a moratorium on the interest before I entered into any further discussion (years ago mind). Is this not worth the paper it's typed on then? I always assumed that the alleged shortfall was the amount they billed you for, because if they add interest who on earth would ever pay it off, even if reduced? This is so unfair!

-- Too scared to say (iwasduped@yahoo.com), June 12, 2001.

In our case the Lenders tried to add interest after the sale. In court the Judge disallowed it. You cannot add interest after the sale unless there is a money judgement order. Apparently. It is my belief, however, that interest can be added to the debt at a rate of 8% once there is a money judgement order.

-- jacky jones (jones5@btinternet.com), June 12, 2001.

Hmm I'm not sure I agree with you there, Jacky.

Interest is calculated up to the date the judgement is made, then added to the original debt with costs (which are fixed on the small claims track) to give the total judgement debt.

The debtor then pays the judgement debt off by instalments or whatever.

-- pendle (pendle@amun-ra.demon.co.uk), June 12, 2001.

You may well be right Pendle. All I know is that the Judge didn't agree with the interest after sale being added on and the Lenders were very quick to agree with him. They offered no argument whatsoever.

-- jacky jones (jones5@btinternet.com), June 12, 2001.

Oh well that explains it Jacky! If the lenders felt they were entitled to that interest, they'd have argued the point - obviously they were after getting more and hoping to get away with it!

-- pendle (pendle@amun-ra.demon.co.uk), June 12, 2001.

AND THE PLAINTIFF CLAIMS

The sum of (net shortfall amount)in this case MIG added back on

The sum of ****** being interest on the the outstanding amount from the completion date on (orginal day of sale after repossession) to the date of issuse of these particular claim or Statutory interest Rate of 8% per annum pursuant to section 69 of the County Court Act 1884.

Interest from the date of these particulars of claim to the date of Judgement or sooner at a dsily rate of *****

this is from actual court doucuments

possession date 1993 particulars of claim 1997 summons Dec 1997 followed by Attachment of earnings.

Total a very large amount Details of this are standard procedure in County Court Green Book.

Yes if the Lender wishes to apply the whole HOG then these are the Court Rules.

Nice reading is it not! exept for the Victims!

Charles Twford

-- charles twford (charles twford@lineone.net), June 12, 2001.

The Act isn't that important at this stage. What is important is to get letters into this lender asking for documentation/proof etc, as detailed ad nauseum on this site.

You also need to read up on how to deal with a court claim should one pop through your letter box. Sources for that info include CAB, solicitor, or The Litigation Handbook (but get the latest edition). Very good, quick-to-read book.

Lee

-- Lee (repossession@bigfoot.com), June 13, 2001.