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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi We bought a company from a sole trader, we agreed to pay

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We bought a company from a sole trader, we agreed to pay for the stock over 36 months. I signed a personal guarantee. The business did not work out, he called upon the guarantee.
I could not afford to pay the full amount at the time. We verbally agreed i would pay what i could afford on a monthly basis. I have been paying £100 a month for the last 3 years with no mention of interest. Last month I received an email stating
“ I have been advised to charge interest on the balance. If you wish to settle this account within the next month I will accept a full and final figure of £2,000 to be paid before the 1st of August. Interest on the full outstanding amount after that date will be levied at the rate of 2% per month on the reducing balance.”

Can he do this suddenly charge interest

Alex Watts : Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : If interest was never discussed or agreed then no.
Alex Watts : It must be discussed.
Alex Watts : He can only claim interest if he decides to pursue it in court and even then interest would be on the outstanding amounts and also at the judges discretion.
Alex Watts : But no he can not now charge interest.
Alex Watts : even if he could a court would only award 2% because of the low rate.
Alex Watts : Can I clarify anything for you about this today please?

no that is fine thank you

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