Interest on Legal Fees?

My sister got divorced 2 years ago and got a rather large bill. She paid 10k off it leaving the balance to be paid later. Roll on the 2 years and she is selling her house and solicitor handling sale has advised that the solicitor who handled her divorce put a charge on her house for the sum owing + interest at the rate of 12% p.a.

12 % p.a. seems really high, would this be usual?

Also, what documents have needed to have been signed by her for a charge to be put on the property as she has no recollection of signing anything.

Thank you
Blarney

Only one way to find out................

Ask the divorce solicitor for details.

And its telling that she has a new solicitor and she did not discharge the divorce invoice.

mf

Thanks mf1. No she knew that she had the bill owing and it would have to be paid over time but she didn't realise the interest rate that would accrue. The solicitor was aware that she was tight on money and it would take quiet a while to pay the bill involved. She has never walked away from paying a bill.

Either she signed a deed of charge, or the solicitor got a judgment against her and registered it as a judgment mortgage. That would have involved taking her to court so she would have at least have received notice of it.

The rate seems very high.

The rate of interest on judgement debts was 8% up to the 1 January this year, when it was reduced to 2%.

http://www.homs.ie/news/rate-interest-judgment-debts-reduced/

But there is something odd with your story. You don't just pay €10k "leaving the balance to be paid later". Presumably some agreement was reached with the solicitor? Presumably the solicitor asked for the money? Presumably the solicitor issued legal proceedings. The solicitor achieved an awful lot in just two years.

Brendan