Hi gresgow

8% is certainly the prescribed rate. Best ask exactly how the interest was calculated.

The should be able to provide a schedule of each debt and the interest amount at a specific date.

Mark

Hi Mark

Thanks for your reply.

You say 8% is the prescribed rate, which on debts of £11000 would be approximately £880 and certainly nowhere near the £4k+ I have been advised.

Is there no industry standard for calculating interest in scenarios such as mine? If it was the difference between £900 and £1000 I maybe wouldn't quibble but when the difference is between £900 and £4k+ then this is quite significant.

Thanks

Hi gresgow

Its a good point, however the 8% is compounded so will increase depending on the length of the trust deed.

I guess your Trust Deed's been running for. We have a case where the debts were £10,229 running almost exactly 4 years and paid 100p in the £ plus interest @8%. The interest over that period was £3,170.

This should give you a guide if you trust deed is approximately that old.

Mark

Thanks for your reply Mark

I didn't realise that interest was compounded - that probably explains it I suppose. My TD has been running for over 3 years now and will have run for over 5 years if completed by the scheduled date.

Hi gresgow

That may explain the numbers. On the case I mentioned, someone said it was a great rate of interest and better than any bank rate!

Mark