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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.
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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