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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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i TOOK A PAY DAY LOAN FOR £1,000 AND PAID FIVE OR SIX INSTALLMENTS

Resolved Question:

i TOOK A PAY DAY LOAN FOR £1,000 AND PAID FIVE OR SIX INSTALLMENTS OF £99. tHIS WAS SIX YEARS AGO. i THINK THE BALANCE OWED IS ABOUT £400. nOW i GOT A COUNTY COURT PAPERS ASKING FOR £1,490 + FEES. wHAT DO I DO?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

What was the date of the last payment and what is the date of issue on the Court papers please?

Customer:

Claim form is received on last Friday dated 30 July 2014.

Alex Watts :

What date was your last payment?

Customer:

Lat payment was about five years ago. Exact date not known

Alex Watts :

Ok - if it was OVER 6 years ago the claim is statue barred

Alex Watts :

If it was under 6 years ago then the claim is in time.

Alex Watts :

If you accept you owe the entire or part of the sum then you can send back the admission form

Alex Watts :

If you part admit the debt then the Claimant will be asked whether they accept that and if they do, Judgment will be entered

Alex Watts :

If they do not or you dispute the debt then you need to file a defence.

Alex Watts :

The matter will be set down for a hearing and a Judge will decide whether you owe it

Alex Watts :

You can ask the Judge to consider any interest and fees and a Judge can award none, some or all

Alex Watts :

But you need to either admit the claim in full, admit the claim in part or send in your defence

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

It seems for £400 out standing for about five years the interst of over £1,000 seems excessive. is there any law governing ionterest charges?

Alex Watts :

It would be governed by the terms and conditions of your loan and contract.

Alex Watts :

But a Judge always has discretion whether to allow interest and charges.

Alex Watts :

Does that help?

Customer:

in practical terms is it worth defending? or is it worth negotiating?

Alex Watts :

If you accept you didn't make all the payment, then negotiate.

Alex Watts :

But either way send something back to the Court, even if it is a part admission

Alex Watts :

Otherwise you may get Judgment in full entered against you

Alex Watts :

Does that answer your question for you?

Customer:

ok. Thanks.

Alex Watts :

You have rated POOR SERVICE?

Alex Watts :

What else do you want to know?

Alex Watts :

Why did you rate poor - how else can I help you?

Customer:

what you have said is in the papers. nothing new.looks like an advice from CAB.

Alex Watts :

But that is the legal position - I can't tell you something that is not true.

Alex Watts :

You can only either admit the debt, partially admit or defend it

Alex Watts :

You asked if there is anything regarding charges and I said yes.

Alex Watts :

The Judge can award full interest and charges, partial interest and charges or none of them.

Customer:

must be a way of defending. i need a lawer who is agressive and find ways out

Alex Watts :

You took out £1000 and only made 5 or 6 payments - on what basis do you say you do not owe the balance?

Alex Watts :

Are you saying you did not have capacity?

Alex Watts :

Did you not understand you had to pay the loan back?

Alex Watts :

Did you read the terms and conditions?

Customer:

admit the balance but interst charged is enormous. Over £1,000 interest for £400 out standing for 5 years?

Alex Watts :

I agree. But the Judge can determine the interest.

Customer:

Day light roberry comes to mind.

Alex Watts :

See my response twice above

Alex Watts :

A Judge can limit interest, allow interest or not allow interest

Alex Watts :

As per the Civil Procedure Rules Part 3

Alex Watts :

But as of yet the Government does not limit charges of interest on payday loans

Alex Watts :

There is talk as you may have seen this on the news, but nothing yet is in law

Alex Watts :

Therefore it is down to the discretion of a Judge

Alex Watts :

I would anticipate though if you admit part of the the debt you owe, they are likely to accept

Alex Watts :

This is because if you dispute £400 and it goes to Court, it would be a small claim

Alex Watts :

Therefore any legal costs the payday loan incur can't be recovered

Alex Watts :

So they will probably accept as its a commercial decision

Alex Watts :

It will cost them more then £400 in legal costs to pursue that

Alex Watts :

So if you admit what you owe, less interest, they will probably accept

Alex Watts :

But I would talk to them - see if you can come to a settlement

Alex Watts :

Does that clarify the position for you?

Customer:

ok. Please explain the wording on the papers - The claimant claims claims payment of the overdue balance due from the Defendent(s) under a contract between the Defendent(s) and every day loans dated on or about 25/10/2007 and assigned to the claimant on 31.03.2010 in the sum of £1490.63.

Alex Watts :

Did you make payments weekly or monthly?

Customer:

Does this mean it is over six years now? the payments were monthly

Customer:

Are you still there?

Customer:

payments were monthly

Alex Watts :

So you paid over 6 months then stopped?

Customer:

i think that is what happened.

Alex Watts :

You need to be sure

Alex Watts :

If that it IS what happened you are ok

Alex Watts :

The claim is time limited as per the Limitation Act 1980 and therefore out of time

Alex Watts :

As long as you do not admit the debt then its time barred

Alex Watts :

If it is NOT what happened then you owe the debt and potentially face a claim

Alex Watts :

Therefore you need to check your records and ask them for a statement of account

Alex Watts :

If your last payment was OVER 6 years - its time barred

Alex Watts :

Does that clarify?

Customer:

Thank you. I am happy to now. What do I say on the claim form. there is nothing to tick "time barred".

Alex Watts :

No - defend the claim and say: The claim is statue barred as per the Limitation Act 1980

Alex Watts :

That's it

Alex Watts :

If this answers your question can I invite you to re-rate my answer.

Customer:

Thank you

Alex Watts :

If the system wont let you or you need more help please click reply.

Alex Watts :

All the best



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