Judgement interest

[Curiousg]

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

 

[trojan]

I would definitely take it up with he Credit Union.

 

[Gerry Canning]

Ask CU to immediately put your (savings) (shares) against the loan and do not take no for an answer.

 

[Curiousg]

OK thanks.

Should I be charged interest at the cu rate or the amount of the court judgement?

 

[44brendan]

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.