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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 70519
Experience:  Over 5 years in practice
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Hello, I had a credit card some years ago and on my credit

Customer Question

Hello, I had a credit card some years ago and on my credit file it says I owed £1600. However when I defaulyed it syas I owed £2880. I have been paying this off through Drydens solicitors but should I really be paying back £2880?

Thanks
Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Hi.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

What would you like to know about this?
Customer: replied 3 years ago.

If I owed £1600 when I defaulted then should I just be able to pay back that amount as I think the charges they are trying to collect are un realistic and ive already paid back £1240 but they still say I owe £2364.


 

Expert:  Jo C. replied 3 years ago.
Thanks.

The simple answer is that it depends. The sum that you owed upon default is not the sum that is due now I'm afraid.

You are liable for interest under the terms of the agreement or, at least, at 8% pursuant to the County Court Act. Also, if they went to court then they would get the costs of court and a fixed cost of a solicitor.

What they would not get though is debt collection charges which may be what you are being charged here. If so, you are not liable to pay for those.

They will not agree with that view that but that is the likely answer you would get if you went to court over this.

Can I clarify anything for you?

Jo
Customer: replied 3 years ago.

Thanks, XXXXX XXXXX look normal?


 


Barclays balance =£1630


Balance of instruction of Greenhalgh £2844.80


Pre issue legal costs =£250


Issue Fixed Costs =£80


Issue fee on claim =£108


Fixed costs on judgement =£22


Interest =£90.87


Final charging order costs =£209


Payments received since Greenhalgh instruction £1240


Balance £2364.67


 


Should I be liable for all the above charges as I cannot see the ones you mentioned?


 


Thank you


 


 

Expert:  Jo C. replied 3 years ago.

1 I'm not sure why thats the balance?

2 They will not get this.

3 They will get issuing costs but they would probably be more than this.

4 Im not sure what they mean by this.

5 Or this

6 They would get interest. This may be about right.

7 Not sure what they mean by this.

They will get interest either under your contract or at 8 % per annum or thereof, costs of issuing and fixed costs of using a solicitor of £50.

Jo C. and other Law Specialists are ready to help you
Customer: replied 3 years ago.

What do you suggest the best action to take now is? Do you agree that I am being to pay back far too much?

Expert:  Jo C. replied 3 years ago.
On the face of it, this does seem to be greater than they would get at court.

I would never have suggested paying back in instalments though. I would have told you to refuse anything except a lump sum and then you would have got a huge discount.

At this stage, you could still do that. You take the risk of being sued but then they would only get the sums I mentioned above.