Swampy442 Posted March 3, 2012 Share Posted March 3, 2012 Long story short, a member of my family defaulted on a loan which resulted in a CCJ and an account with a debt management company. The company never send out statements so one was requested. We were working out some figures and it looked like the debt should almost be repaid, but when the statement turns up, it shows the debt company were charging interest on this debt, roughly equivilent to 25% of what they pay per year. Is this legal? Can they charge interest on a debt? Ive recommended the usual things like the CAB, debt line etc but does anyone have any advice? Cheers. Quote Link to comment Share on other sites More sharing options...
Rob Posted March 3, 2012 Share Posted March 3, 2012 Debt Management companies are there to make money off debtors. Should have gone with the CCCS, they are a charity. Usually, when a credit card or whoever, sell a debt they will sell the total amount, ie the loan plus the full terms interest added on, as that is what the customer agreed to when they took the debt. If a debt has been sold on to another company with new additional terms and interest thrown in, then this is not what the debtor signed an agreement too, so worth checking all that out as it sounds dodgy to me. Quote Link to comment Share on other sites More sharing options...
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