Kerry Underwood

COURT FUNDS OFFICE INTEREST RATES REDUCED FROM TODAY 1 JUNE 2020

with 4 comments


Kerry Underwood offers consultancy services in relation to this and other matters and details are here.

The Lord Chancellor has today announced an immediate reduction in the Court Funds Office rates of interest payable to clients, with effect from today Monday 1 June 2020.

The Special Account reduces from 0.5% to 0.1%.

The Basic Account reduces from 0.1% to 0.05%.

See –

Interest Rate Reductions On The Court Funds Office Special And Basic Accounts.

In practice, solicitors should be very careful about allowing money to be paid into court on behalf of a protected party, as it will decline in value in real terms.

Solicitors should look for investing the money in a secure way, having taken proper advice, and that investment will of course still need the approval of the court.

Written by kerryunderwood

June 1, 2020 at 12:22 pm

Posted in Uncategorized

4 Responses

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  1. Hopefully the 8% interest on costs will follow suit.

    Anonymous

    June 3, 2020 at 11:17 am

    • 8% on judgment debt, or costs once crystallised. Rare for court to award pre-judgment interest on costs, although it has the power to do so, which means clients, or rather their solicitors, carry the cost of interest on unpaid costs, so there are different considerations.
      Kerry

      kerryunderwood

      June 4, 2020 at 5:20 pm

  2. Thanks, yes, my concern about interest on costs following judgement is the 8% rate when current base rates are 0.1%.

    Anonymous

    June 5, 2020 at 3:43 pm

    • Yes, there is no doubt that the 8% rate is out of kilter with all other interest rates.

      Kerry

      kerryunderwood

      June 8, 2020 at 12:25 pm


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