Thread: Glen73 vs HSBC! - a little advice please!

Hi Glen

What you need to do is fill in the spreadsheet in the bank template library. It will automatically work out the interest for you, however you cant claim back interest til you file the claim in court. Once you have input all your charges and the dates, hide the colums for interest and days since charged, print it out and attach this with your prelim letter.

Good luck

There's two distinct lots of interest applicable here and you need to get them straight in your mind first.

When you had a charge deducted from your account this lowered your bank balance. Over time the accumulated total of these charges may have driven your account into overdraft, and maybe past your limit. The bank usually charges you interest on the overdraft balance. There is a spreadsheet available that will work out how much of the interest they have charged you is down to the charges. This IS reclaimable as part of your initial claim.

When your claim gets to the stage when you have to issue a summons for repayment of the monies owed you are entitled under Section 69 of the County Courts Act to add interest at 8% to the amounts you are claiming. The spreadsheet will also calculate this amount.

In your initial claim ask for the charges back, plus the calculated interest on those charges. Only when you raise your court paperwork can you claim the extra 8%.

Spreadsheet is here http://www.consumeractiongroup.co.uk...-interest.html - please read the whole thread to understand how to use it.

GLen


Just a slight variation on the theme set out by jeep.

YOu can claim back the unawful charges plus any interest you have paid as a result of theose charges.#

Now the variation.

You can either claim interest at the contractual rate accoridng to the unathroirsed overdraft rate (tpyically around 25 - 30% per annum)

or you can claim interest if and when it gets to court under Section 69 of the County Courts Act.

Contractual interest will obviousley increase the amount of your claim but this may have drawbacks. If it takesw the value of your claim over 5k then this will put you in whats known as Fast Track should it get to court.

IF you were to loose your case then you would be liable for costs typically restricted to a max of 750.

If the claim goes over 15k however, you would end up in multi track where if you lost the sky would be the limit for costs.

Although this sounds a bit gloomy, its worth understanding at the beginning of your claim what the options are.

THe contractual interest route is a new approach being tried by some mebers of the site with their claims but it is legal and perfeclty valid approach.

HTH

Glenn

PS for clarification if you claim contractual interest you cannot claim Sec 69 interest.

Hi glen Uk

I think as long as the principal claim is under £5k the interest and charges can take it over £5K but still be on the small claims track. BUT if the total IS over £5k the the court fees jump to £250

Dave

Not quite, Dave - this is true with s69 interest, but with contractual interest the interest is part of the basic claim and is used for the cost AND the track.

Thats what I like about this forum....

you really do learn something every day

thanks

Dave

I agree with jeep,

Sadly contractual interest not only is included in tht etotal for fees but also the allocation to a particualr track.

I wanted to do a single claim against Abbey my fees and the interest paid put the claim in fast track.

However, when i add contractual interest it goes a long way into multi track, so i have spoken to a few people on line and a couple of different courts to check the issues about this before putting in my claim.

HTH

Glenn

firstly you should have done the speadsheet and sent them a schedule of charges (+ showing the interest on each charge that you will be claiming @8%)

if they settle before court they can get away without paying the interest. If they take it to court and fold you can claim the principal and the interest as calculated

I think this is right though someone may correct me
Dave

gjindancer, it all stems from a basic principle of law - to be put back in the position you were beforehand. In this case, the charges are (allegedly) unenforceable, so it follows that you can also claim back the interest they levied on the charges that shouldn't have been taken. If you want to dress it up in a bit of legalise (bits in bold are accepted legal phrases with particular meanings - I've done what research I can and it sounds good but I obviously can't vouch for it, so you use it at your own risk):
The Defendant applied overdraft interest to the charges. This overdraft interest is an integral part of the money had and received by the Defendant resulting from the mistake of law regarding the default charges. The Claimant is therefore also reclaiming the overdraft interest levied on the charges on the basis of restitution of unjust enrichment through payment by the Claimant to the Defendant of both charges and overdraft interest originating from the same mistake of law. If the charges alone were repaid to the Claimant, the Defendant would be left unduly enriched by over £XXXX – the Claimant contends that this would be an iniquitous state of affairs.

The Claimant contends that this claim for restitution for unjust enrichment resulting from a mistake of law is supported by Deutsche Morgan Grenfell Group plc v Inland Revenue Commissioners and anor ([2006] UKHL 49); and Kleinwort Benson Ltd -v- Lincoln City Council Kleinwort Benson Ltd -v- Mayor Etc Of The London Borough Of Southwark and Others; Kleinwort Benson Ltd -v- Birmingham City Council Kleinwort Benson Ltd -v- Mayor Etc Of The London Borough Of Kensington An [1998] UKHL 38; [1999] 2 AC 349; [1998] 4 All ER 513; [1998] 3 WLR 1095.

Finally, the 8% SI is intended to recompense Claimants for having been deprived of money wrongfully taken (in this case, the charges + overdraft interest). So you are on perfectly sound legal ground going for charges + overdraft interest + SI. I wish I'd realised that - the penny didn't drop with me until after my N1 (which is just for charges + o/d interest). Regards, Mad Nick