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interest rates and discretion of judge

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13 years 5 months ago #436 by ninesquared
interest rates and discretion of judge was created by ninesquared
Ok my claim is finally being heard within next 2 weeks. 2 points I would like clarity on and reference to relevant parts of the Act.

The defendant has written to say that the interest rates are excessive but aren't these laid down as applicable to commercail debts?
Who publishes the rates and also how can i get copy of rates going back to beginning of 2009 ?

Secondly the defendant is saying that the interest and compensation are at the discretion of the Judge ? How can this be correct if it is an 'Act'? Provided that I meet the requirements of the Act, surely it is not something that can be overuled ?

Any help or advice welcome

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13 years 5 months ago #438 by David J
Replied by David J on topic Re:interest rates and discretion of judge
Hello De-Novo

You can find a table of the historical reference rates here . Use the reference rate when you debt became overdue. The reference rate is set twice a year (1st Jan and 1st July) and the interest rate in place on that day is added to 8%. So at the moment, we are still on 8.5%.

With regard to your second question. It is possible for a judge to remit the statutory interest under section 5 of the act if circumstances require. This may be a reduction of the rate, or a reduction of the interest period. You can read here why the judge might decide to remit the interest in certain circumstances by viewing this link to the legislation on the Governments website.

If you meet the requirement of the act, then you should not have a problem.

Good luck with your claim and please let us know the outcome.

Kind regards

David

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13 years 5 months ago #439 by ninesquared
Replied by ninesquared on topic Re:interest rates and discretion of judge
Thank you for your response David.

I certainly will let you know the outcome as I hope it can be of use to other forum members in the future.

This was a case of consistent late payment over a 2 year period with approx 70-80% of invoices paid late (by as much as 90 days). The number of invoices in question is approx. 50 over that period. I have 'lumped' blocks of invoices together rather than charging compensation on each invoice, as having red on this forum before it appears to be what iss reasonable

The defendants response has been that I am not entitled to claim as this was not raised at the time

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13 years 5 months ago #440 by David J
Replied by David J on topic Re:interest rates and discretion of judge
Hello De-Novo

Actually you have up to 6 years (5 years in Scotland) to claim interest and compensation on unpaid invoices or invoices that have been paid, but were paid late.

This section here from the users guide has more information on this point.

Regards

David

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  1. Discussions forums
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  5. The late payment of commercial debts (interest) Act.
  7. interest rates and discretion of judge
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