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Moderators: TalbotWoods, JaneClack

By shiloh73
#221972 Hi there i'm new to this sight and would like to know if anyone can answer a question for me?

I've recently received a letter from my credit card lender, saying i had until april 12th to pay my credit card of over £9000 or i would receive court action. I have nearly £26000 worth of debts (was £30000) was doing a dmp with cccs but found it wasnt working for me and the interest on my credit card just shot up! what i would like to know is if they take me to court could this actually benefit me as they would have to freeze the interest?

look forward to someones help
By everett
#221974 Many creditors have been applying for 8% interest to be added to the debt on a CCJ.
Everything really depends on your circumstances like do you have any equity or own your property ?
By shiloh73
#221976 hi thanks for the reply

i do own my property but have only lived here for 4 years so havent got any equity for it.

i'm starting to think that even if they do add on 8% then let them. just wish they would hurry up and get on with it.

look forward to the day i say goodbye to lloyds tsb
By everett
#221978 Remember they could also apply for your CCJ to be paid in full and if you cant manage to pay it ,go for a charging order against your property.
Like I said it all depends on your circumstances as to what route your creditor and possibly the Judge will take.
Hope it all goes well for you.
User avatar
By JaneClack
#221983 If the debt is subect to the Consumer Credit Act that is the interest they cannot add ie 8%.

If they have put down in the original agreement that they would add interest after any judgment, and ask for it in the claim form then they can actually claim contractual interest.

In the past Paragon were nototious for doing this and not letting people know so their debts mounted and mounted. Now if they do this and claim it they have to let you know every six months what the position is.

If you default on a CCJ then the creditor can apply for enforcement in England and Wales - used to be the dreaded bailiffs (and county court bailiffs are reasonable people!) but could be an attachment of earnings, a third party debt order or even a charging order. This is a method of turning an unsecured debt into a secured debt and can be fought. However district judges seem nothing loath to allow these to happen - what they do not allow to happen except in very rare circumstances is to let the creditor force a sale. Just carry on paying the debt and either one pays off the charge or the money secured AT THE DATE OF THE CHARGING ORDER would go to the creditor when the house was sold unless there is not enough to do this when it becomes unsecured again.