Claiming Interest in the County Court
If you are bringing a claim in the County Court you can claim interest. If you have a contract with the other party which says how much interest should be paid on late payment then you can claim the interest.
If you don’t then you can claim the statutory interest rate. This is currently 8% per year. You cannot usually claim for an interest rate higher than this.
Generally you can claim interest from the date the problem started to the date when you issue the claim form. You can also include in your claim a claim for interest at a daily rate so that the Court can order the Defendant to pay interest to the date the Judgment is made. The Judgment is the date when the Court makes the order that the other party has to pay.
In some cases you can also be entitled to interest from the date of the Court order until the date you are paid.
A working example
If your claim is for £2,300.00 and there has been 60 days between the money becoming owed to you and the date of your claim.
The sum to work out the daily interest is 2300 × 0.00022 = £0.51 interest per day (rounded up to the nearest penny)
The sum of work out interest is 60 days x £0.51 = £30.60 interest to claim.
Filling in the claim form
When you are filling in the claim form I would add the following wording “the Claimant claims interest under section 69 of the County Courts Act 1984 at the rate of 8% per year from (put in the day you say the money became owed) to (put in the date when you issue your claim form) of £(put in the daily rate of interest multiplied by the number of days that have passed since the money became owed to you) and also interest at the same rate up to the date of Judgment or earlier payment at the daily rate of £(put in the amount of interest)”.
At all times we would recommend that you take legal advice specific to your case and this news item is purely a guide and does not represent legal advice you should rely upon.
Matthew Winder is a Civil Litigation solicitor based at our Lancaster, Kendal and Barrow offices. He can assist you with bringing claims in the County Court. He deals with money claims and property related litigation.
Matthew Winder is our Senior Director who has worked on civil litigation matters since qualifying on the 22nd November 1995.
23rd March 2015