‘As we all know, the Judgments Act 1832 (s.17) and orders made under it prescribe the rate of interest ordinarily payable on a judgment debt. The rate, which is rarely changed, used normally to be significantly higher than the likely cost to an ordinary borrower of borrowing. One can say that, as a matter of both principle and commercial sense, the judgment creditor should be paid by the judgment debtor at least as much interest as the creditor may be
losing by any delay, and that it should be made more expensive for the judgment debtor to delay payment rather than to pay promptly. (The problem has yet to be addressed that in the wider world the rates of interest payable by private individuals on overdrafts or credit cards substantially exceed the Judgments Act rate).’
Hailsham Chambers, 28th November 2023
Source: www.hailshamchambers.com
