The default interest compensates the lender for the added risk.

Banks tend to add default interest to the loan agreements in order to separate between different scenarios.

See Notice 700/43 Default interest for further information.

Another predatory practice is called default interest - a rate increase that kicks in if a borrower misses a certain number of payments.

The default interest is usually much higher than the original interest since it is reflecting the aggravation in the financial risk of the borrower.

Default interest is the interest that a borrower would pay if the borrower will not fulfill the loan covenants.

Default interestGuidance on dealing with VAT default interest.

Default interest for VAT underdeclared on returns is the same as the rate set by the Inland Revenue (see this issue p 129).

Under some circumstances, HMRC may charge interest, known as default interest, or pay interest, known as statutory interest.

You can find further information on default interest for VAT in Notice 700/43 Default Interest.

See Notice 700/42 Misdeclaration penalty and repeated misdeclaration penalty and Notice 700/43 Default Interest.

Default interest VAT Notice 700/43: Instructions to calculate default interest and appeal against our decision to charge it.

In the first half of 2005, the government launched a bond exchange to restructure approximately $81 billion of national public debt (an additional $20 billion in past defaulted interest was not recognized).

If you make errors on your VAT return, then you may be liable to a misdeclaration penalty as well as being assessed for any VAT and default interest due.

It does not seek declaratory relief (like previous intervenor complaints) regarding the Receiver's intentions regarding payment of default interest, late fees, attorneys' fees or other amounts pursuant to a secured loan.

VAT default surcharge, VAT civil penalties and VAT default interest are not normally applied to post-insolvency VAT returns, except in the case of:

It will also establish the obligation to pay default interest for late payment These are rules based on absolute justice, and they can help to alleviate the situation of many companies, especially small and medium-sized enterprises (SMEs).

It is legal for lenders to originate mortgages above those thresholds, but, according to the regulations, with certain prohibitions, including: charging default interest, paying a home-improvement contractor directly from the proceeds of the loan and charging fees for services not performed.

Back in February this year, a draft law by the CSD was approved in Parliament which establishes that the state is to begin paying default interest when the delay in payment exceeds the limits set out in the contract or in law (30 or 60 days).

VAT Notes No 3 2008 Items in this edition include: a simpler and more consistent penalty system for tax errors, default interest and net errors of less than £2,000, are you a Higher Educational Institution that operated a partial exemption method based on the CVCP guidelines?

The index is compiled on the basis of clarity of contract and conditions, the presence of default interest in excess of statutory regulations, the cost of a delayed payment in the form of penalties, the cost of the loan in the case of timely payment and the proper use of the arbitration clause.