A little advice on charges guide

fantastic J barton---haven't you got a football game to play on the telly tonight

[j.barton1]

LOL Nattie, It went over my head but my hubby got it.

Jenny

[Will Scarlet]

Nattie - if you need some help with particular banks please PM me. The chances are I will have what you need.

Will, this thread started when I really thought I could do for most banks what I had done for NatWest, which is make sure that people claimed correctly and won all the time. I am not an expert on A&L and Caro kindly put this as a stickie, which i am grateful for. If you have info on other banks please feel free to post on other banks threads. If you look under the quick reply box you will see threads on other banks that I tried and unfortunately failed to do but feel free to post on those one, I am always grateful that someone has both the info and inclination to post on all of them. I hope that explains it.

[sansho]

The unauthorised and authorised rates are the same, the specific rate to use varies depending on the type of account you have whether current, flexi-plan, etc..

In the case of a current account, these were the monthly & EAR rates for Alliance & Leicester from before the time they took over Giro Bank till present. I know in the case of keyway accts or similar named the rates were much higher than current account rates

UNAUTH/AUTH OVERDRAFT INTEREST RATES APPLIED VALUE EAR
MONTHLY INTEREST RATE (NOV 1989 - AUG 1990) 2.00% 26.75%
MONTHLY INTEREST RATE (SEP 1990 - JUL 1991) 2.50% 34.50%
MONTHLY INTEREST RATE (AUG 1991 - MAY 1993) 2.30% 31.30%
MONTHLY INTEREST RATE (JUN 1993 - SEP 2001) 2.20% 29.80%
MONTHLY INTEREST RATE (OCT 2001 - NOV 2002) 0.99% 12.50%
MONTHLY INTEREST RATE (DEC 2002 - DEC 2004) 1.25% 16.08%
MONTHLY INTEREST RATE (JAN 2005 - FEB 2007) 1.33% 17.08%

I hope this helps, if going for the contractual interest rates it would be sensible depending on how far back you claim for charges goes, to use the rates at the time when these charges were applied. A useful site that can help with such calculations roughly is Geek Hideout --> Compound Interest Calculator.

All you need to do is calculate on a per charge basis with the varying rates over the number of years the particular charge was applied (note the monthly addition should always be zero).

Then comparatively work the number of months for the charge on one rate and then find what its sub-total comes too for those months.

Then hop onto the next column (which is at a different rate) and locate the sub-total (in paragraph above) in the column. Once found use it as your starting point and again calculate the number of months on this rate, you will end up having a newer higher total. You can continue this for each of your charges.

Note it is rather laborious process and not for eveerybody, but it does make a huge difference for those seeking to pursue the contractual interest rate method (especially if you have charges that pre-date 2000).

[caro]

You're right it is a huge difference when claiming contractual/compound interest, but extreme caution should be urged if planning to do this, as there doesn't appear to be any legal basis for doing it. Please research thoroughly if planning to go down this route to ensure you understands the disadvantages, as well as the more alluring advantages.

For those who feel it is an absolute must, I suggest you make sure that the claim is under £5,000 including the interest. That way, if the worst happens and the case is struck out, they won't leave themselves exposed to paying costs, as well as losing their claim, as it's in the small claims court.

This issue is discussed at length on many other threads, so please look for those, or start a new thread in the appropriate forum rather than debate it here on the charges guide thread. I just wanted to make the point as it's raised in the above post.

Thank you very much for the information by the way.

[noisypinkbubble]

I don't know if this is just me, but I've been going through my statements and in 2004 up to about September instead of "Unathorised overdraft charge" the charges were incorporate into the "Monthly Overdraft Charge" which went from £5 to £25. On checking the statements its clear thats an unath'd od charge, so I thought I'd point it out for anyone else, as it's easy to miss!

[frankbrown]

Can I claim the OD charge and the unauthorised OD charge from the A&L???

[markthedrainman]

Can I claim back the MONTHLY OD CHARGE ?? or is this a fee for having am overdraft.

Thanks

[sware]

I would also like to know if this charge can be claimed or if it is a fee for having an overdraft. If anyone can answer it would be much appreciated. Thanks.

[Conniff]

Originally Posted by markthedrainman

Can I claim back the MONTHLY OD CHARGE ?? or is this a fee for having am overdraft.

Thanks

sware
I would also like to know if this charge can be claimed or if it is a fee for having an overdraft. If anyone can answer it would be much appreciated. Thanks.

That is a 'fee' and can't be claimed back.

[Steve_T]

I'm currently being charged £5 a day for going overdrawn on an account with no agreed overdraft. I've asked how long they are prepared to keep doing this and theoretically it could go on forever. Therefore this time next year I could owe them £1825 and all for going £12 overdrawn.