- Mon Mar 29, 2010 10:07 pm
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.