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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My husband and I took a loan from my friend's Ltd company,

Resolved Question:

Hello
My husband and I took a loan from my friend's Ltd company, Advanced Systems Technologies Ltd, in Sept 2006 for £150k. Interest was agreed at 1.25% above BOE base rate, then was increased at our friends request in 2009. AST Ltd are a software Consultancy company, and are not registered lender. They have lent money to other individuals and charged interest. We both signed an agreement in 2006. We are in a position to pay off the original total sum of £150k on time in September. My question relates to interest; Is the interest valid, and is the increase in interest valid?. Thanks
Submitted: 11 months ago.
Category: Law
Customer: replied 11 months ago.
I should have said, is the interest enforceable under the law?
Expert:  Ash replied 11 months ago.

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

I assume they are not a registered lender under the consumer credit act?

Customer: replied 11 months ago.
No they are not a registered lender, nor are they register for anything other than Hardware Consultancy and computer Consultancy activities. I would like to talk but am at work, so can follow up and pay for conversation next week if the offer is available.
Customer: replied 11 months ago.
As the loan is pre April 2007 changes to CCA and is over £25k, we assume we aren't protected by CCA legislation. Thanks
Expert:  Ash replied 11 months ago.

Ok. Then they can't claim interest as they are a business.

You owe the debt but not the actual interest. Otherwise this would be a breach of the consumer credit act.

So you owe the debt but not the interest.

Can I clairfy anything for you about this today please?

Alex

Customer: replied 11 months ago.
please. So even though the loan is over £25k and pre April 2007, the CCA is still relevant?
Expert:  Ash replied 11 months ago.

Yes because they are not registered. It is an illegal transaction. The 1974 still applies.

Does that clarify? Alex

Customer: replied 11 months ago.
It certainly does. I feel ive had good value from this conversation, many thanks
Expert:  Ash replied 11 months ago.

If I could invite you to rate my answer before you go today please, otherwise the site does not credit me for the time spent with you today. Thanks and good luck. Alex

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