# Interest in a judgement



## mmscaldy (23 Dec 2012)

Hi,
Recently been talking to Aib, as ive fallen behind on loan payments. They said if i let their debt recovery and insolvency unit take over the account that i would pay back the principle, over time and that would be it.

I asked several times if it was just the principle and no more interest and was told that was how they worked.

MABS advised me that is correct to a degree, but at the end of paying off the principle  that Aib would then pursue the interest that would have been due. 

Does anyone know if this is true?

Also, if i get a judgement against me, is it 8% interest on the principle sum owed, and just 8%, or is the 8% penalty interest added to the 10.74% interest?


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## Palerider (23 Dec 2012)

Court rate of interest applies at 8% after a Court Judgment is granted against you.


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## dewdrop (23 Dec 2012)

Suggest you ask AIB to confirm in writing what they verbally told you.


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## mmscaldy (23 Dec 2012)

*Clarification*

I spoke with local branch afterwards and they said that my interpretation was correct as far as they knew....after MABS advised me different i rand Dublin back to be told by same guy that he couldnt say for sure what would happen years down the road...i asked him to clarify what current procedure with interest was and he abruptly told me i had till 5th february to comply. 

i intend to meet my local branch manager and ask her very specific questions and record the meeting


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## Time (23 Dec 2012)

The have to stop charging interest before they get a judgement. They must fix an amount and then seek judgement on that. Basically a fixed amount must be stated on the court documents. Once they get judgement they can then add 8% courts interest per annum.


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## mmscaldy (24 Dec 2012)

*Thank you*

Ok, Thank you Time, that makes it very easy.....what annoys me is that whilst i have been asking them to freeze the interest until i get sorted out, over 1100 interest has been added.

So is my calcualtion correct then....currently owe 24,000. Interest accruing at 2577 a year....if a judgement is awarded for the 24,000 the interest will be 8% instead of the 10.74 % now so i would have interest of 1920?

Can they raise the amount from the 24k to cover interest that would have accrued and seek a judgement for say 28 or 30k?

Also wondering what timescale am i looking at should i notify them by 5th feb deadline that im unable or unwilling to pay....how long before a judgement is granted in the circuit court? Because the way i see it, the sooner im paying it off at 8 % the better, its less money from my pocket.

Im not bothered about credit rating or having the judgement issued anyways.


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## Time (24 Dec 2012)

I would send them a letter stating in no uncertain terms that you won't pay them and invite them to take you to court. That way the ball is back in their court. 

They would have to refer it to their solicitors first but at that point the interest has to stop. It would normally take them around 2 months from that point to get their judgement. 



> Can they raise the amount from the 24k to cover interest that would have accrued and seek a judgement for say 28 or 30k?


No way can that be done. Once they fix the amount that is what they seek judgement for.


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## mmscaldy (16 Feb 2013)

*Update*

Hi, just wanted to update on my situation....after asking my local branch manager for a meeting to discuss the options open to me, i received a letter from thge Personal credit centre to say that my compalint had been noted and would be referred to the line manager and they would respond to me. After 11 messages i finally received a call from her....5 minutes into the conversation she was still humming and hawing away till finally admitting she hadnt looked at my case. I asked her if i could do any type of deal in relation to the interest as i felt that the whole thing was unsusatainable unless i could freeze the interest and just pay off the principle. i pointed out it is an unsecured loan, i have zero savings, and no assets. Baiscally it was a no, and i was told that she couldnt understand the mix up in relation to just paying back the principle by allowing my loan go into debt recovery....she said that all her staff were extremely highly trained....i asked her what the next steps were then , after she advised me my account was going to be passed to the Insolvency and debt recovery unit within hours, and she told me she had absolutely no idea. I asked did it mean legal proceedings and she said she wasnt sure. I asked her was it correct that there was a penalty interest of 12% on top of the laon interest that would accru whilst i paid off the principle, and again she admitted to not knowing. I couldnt resist telling her that she wasnt as highly trained as her staff wer supposed to be.
She finally gave me a number for the IDRU, and i spoke to an operator there who clarified they wont start legal proceeding unless i ignore correspondence or have no capacity to pay the loan back. She was unwilling to comment on the interest/ penalty interest.
I asked her if there was any way i could have my ex girlfriends name removed from the loan and for me to accept any repayments or proceedings on my head...she said there wasnt..but then said if Aib received a solicitors letter from my ex, that they could look into it.

Does anyone know what such a letter might contain?

I have applied for my creidt report from the Irish credit bureau, should have it in a few days. 

My thoughts are that if it is a bad credit rating, then to hell with them. I have regained employment, but im so so sick of not having a spare cent and always worrying about money, that i think ill save what i can and keep aib on the long finger , replying to letters a day before deadline etc to drag it out...sorry i tend to rant a bit i know, i guess my questions are theses:

What solcitors letter could my ex partner get to instruct Aib to remove her name from the loan?

Does a penalty interest of 12% apply in addition to the 10.24% already accruing?

If i have a bad credit rating, or get one, how long will it take to clear it so that i could look into a mortgage when im about 50 and debt free?


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