Judgement interest

Discussion in 'Credit Union issues' started by Curiousg, Jul 11, 2016.

  1. Curiousg

    Curiousg New Member

    Posts:
    2
    Hi,

    I have a cu loan which has fallen into arrears and they got a judgement against me.

    My arrears was €16k and shares are €6k, loan @ 12%

    The judgement was for the difference, €10k and the court interest is 8%

    My situation has improved and I have been paying the agreed repayments, however I have noticed that the cu has been charging me interest on the higher amount (16k) at 12% rather than the amount and rate of the judgement (10k @ 8%)

    Is this correct or should I take it up with them as it will lead to a considerable difference over time? Thank you
     
  2. trojan

    trojan Frequent Poster

    Posts:
    178
    I would definitely take it up with he Credit Union.
     
  3. Gerry Canning

    Gerry Canning Frequent Poster

    Posts:
    2,430
    Ask CU to immediately put your (savings) (shares) against the loan and do not take no for an answer.
     
  4. Curiousg

    Curiousg New Member

    Posts:
    2
    OK thanks.

    Should I be charged interest at the cu rate or the amount of the court judgement?
     
  5. 44brendan

    44brendan Frequent Poster

    Posts:
    2,540
    No. Once a judgment has been obtained the amount owning is the amount of the judgment plus accruing interest at the judgment rate. Forget the shares issue. This is now irrelevant as you owe a net 10k (not 16k). Write to the CU re the incorrect interest and advise them that they are only permitted to charge 8% rate. keep a track record of what you pay and calculate ongoing interest separately yourself on a reducing balance as payments are made.