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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,

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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
Customer: replied 1 year ago.
I should have said, is the interest enforceable under the law?

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

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

Customer: replied 1 year 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 1 year 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

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?


Customer: replied 1 year ago.
please. So even though the loan is over £25k and pre April 2007, the CCA is still relevant?

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

Does that clarify? Alex

Customer: replied 1 year ago.
It certainly does. I feel ive had good value from this conversation, many thanks

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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