My calculated interest seems a bit high

[cmorrison]

I am claiming for a total of £1,759 of charges from the cooperative bank which I incurred in three seperate bank accounts over the last six years. My calculated loss of interest over this period amonunts to £768.42 (I should stipulate that I have incurred very few charges since 2003 and that this figure does not include the judicial interest rate). This figure seems very high, can anyone confirm that this looks ok?

[thourb]

I'm not sure how you've calculated the interest rate, so its difficult to say whether its right or wrong! It is a fairly high amount, but if you are claiming that amount of charges back from prior to 2003 then it is quite possible that it is correct.

For example, if you were charged £1753 on January 1st 2003, the combined interest to date at 8% PA would be £530.94. If you're talking about charges going back before 2003, it is quite feasable that the interest you have calculated is correct. Have you looked into contractual interest?

If you want to get your charges back and a whole lot more, this may be for you! Using the arguement of "mutuality" or "reciprocity", it is quite possible for you to be charging your bank the unauthorized borrowing rate, instead of the 8% that is allowed under s69. CCA. If you did that, you could well find yourself claiming back in excess of £2000 in interest!

If the banks can do it to you... Why not do it back to them!

[cmorrison]

Thanks Thourb. I reckon that my interest rate is correct but I'll check out your link regarding contractual interest and I'll shoot them high!!

[cmorrison]

I've just cotacted the Co-op to confirm what the contractual interest rate was. They stipulated that it was 1.5%. I know that 8% is the judicial interest rate but why does the same figure get used so often for the contractual interest rate?

[thourb]

Contractual interest is claimed instead of the 8% allowed by the county court act. It just happens that many people have decided to go with the 8% because it has a proven track record.

1.5% APR for unauthorised borrowing from the co-op? That sounds very low to me, are you sure that's right? You can't even get a low rate loan for anything less than 5%