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DCA's charging interest

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  • DCA's charging interest

    Not sure if this has been discussed before, but thought a discussion / input may be useful.

    When looking around various forums and seeing peoples claim forms, I've noticed that very often the dca claims for statutory interest at 8% and the judge often allows it.
    Is it not the case that stat int is not applicable to any debt covered by the cca1974 - which covers the majority of consumer debt?
    It seems that in a lot of cases neither the judge nor claimant realise this and the dca gets away with it.

    Secondly, you have the likes of Cabot piling on their 12% on purchased accounts.
    Again, as far as I'm aware, they can only do this if the original agreement allowed it. In other words, it had to contain a clause whereby if the account is sold on, the purchaser has the right to continue adding interest. It seems that in most cases the original agreements do not have this clause, it's very rare. Therefore, surely this added interest is unlawful and can be challenged. Notwithstanding that, if the dca is fully aware they can't add interest, but do anyway, does that not constitute fraud?

    Be good to get some clarification on these points to help people out.
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    Happiness, is screwing over a DCA.......

  • #2
    Re: DCA's charging interest

    Some "agreements" do allow for interest to be charged, even after a default notice has been issued. Barclays Advance has this right in the "agreement". They advised me that they would continue to add 33p a day. However latest statement after default notice shows 0% charged.

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    • #3
      Re: DCA's charging interest

      I'm talking about dca's though - when an account is sold on.
      At that point the agreement will have have been terminated. Whilst the debt remains with the OC, then yes they can add interest.
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      Happiness, is screwing over a DCA.......

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      • #4
        Re: DCA's charging interest

        Stat interest can only be claimed if it was in the agreement that they'll charge post-default interest. Yorkshire Bank have it on theirs as standard. That would be acceptable. I know; I fought them on this
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        • #5
          Re: DCA's charging interest

          I was under the impression though Nids, that stat int @ 8% was for commercial debt.
          Anything that comes under the cca1974, stat int was not allowed when issuing a claim?, therefore, when you see it on a claim form from a dca it should be challenged?
          -----------------------------------------------

          Happiness, is screwing over a DCA.......

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