- Sun Feb 05, 2012 9:00 pm
OK let's go
1) A CCJ does have to be granted prior to a CO being awarded. But what creditors usually do is to apply for a forthwith CCJ and at the same time slap in an interim charging order. The CCJ then goes for a re-determination if the debtor is unable to pay forthwith and the creditor is awarded the CO.
2) You should be receiving a statement at least every 6 months this is a requirement of CCA1974 and some changes that were made about 2 years ago
3)As they are not sending you statements then they cannot pin any interest on your debt, neither can they be applied retrospectively ie they send you a statement this month and slap in all the interest for the last 3 years
There is a BIG but though, it is not the CO that has any charge attached to it but the original CCJ. To all intents and purposes the contract for this debt is now the CCJ and not the original agreement and there is another but. So the first thing to do is to scrutinise the CCJ and see what directions the judge made. If there is no reference to interest being applied then IMHO you're almost OK and now comes the other but. Check the original credit agreement that you signed and scour the small print for reference to charging interest in the event of a judgement/default. If there is nothing then definitely no additional interest can be charged.
If though there is something alluding to interest then the creditor might decide to go for some interest. You of course would dispute their claim and they then might go for a new CCJ, if the current CCJ has not interest provision on it.
Then of course as they have not been sending you statements their claim should be struck out.
In general principle a debt that was covered by the CCA1974 should not incur interest charges in the event of a CCJ if the CCJ makes no provision. But there is case law that has been used by creditors that muddies these particular waters. National Debtline has good information on this.
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