Thread: General query on interest charged by the bank:

I have looked in the FAQs and elsewhere, and was unable to find a specific answer.

Typically my statement will look something like:

Charges - £75
Interest - £5.12

Whilst the statement doesn't give a Breakdown (online or on paper) the charges (usually) refer to 3X£25 charges for going over the limit. It would be quite simple to argue the point over the breakdown here.

With no breakdown available, the Interest element is harder. Clearly the bank has a 'right' to charge interest on money I have borrowed (overdraft) but not on the additional 'borrowing' caused by their 'illegal' charges.

Looking at the prepared spreadsheet, if I was to enter 'Interest' as a charge, the bank's 'rightful' interest element is also included when making the entries.

Would it be your 'unqualified' advice to only request a refund of the charges element of my statement (notwithstanding evidence of specific interest charges)?

I'm not greedy, and have no wish for a protracted (and possibly costly) argument to split hairs over what would realistically be about 2% of a claim against the bank.

Thanks,
Spice.

To see the steps I took to recover unfair bank charges with the help of Consumer Action Group, please read my thread Spiceskull v HSBC.

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Do not list the amount taken as interest as "interest"
List it as "interest charges".

Otherwise there is a risk that the court wll be confused and with the 8% beleive that you are charging interest on interest - which you are not.

Fair answer - but my query is still this: is there a way to differentiate or calculate what is right and fair interest (on my borrowing) and what is not right and fair (on money I should not have been debited as having borrowed in the first place)?

Without wishing to sound wimpish, I feel the momentum being gathered against the banks will work best if small roadblocks are kept out of the process - hence I wouldn't (personally) claim for the interest charges unless there were concrete factual figures...

To see the steps I took to recover unfair bank charges with the help of Consumer Action Group, please read my thread Spiceskull v HSBC.

It's just slog, I'm afraid. You have to indetify a charge and then work out for yourself how many days you have been overdraw on that charge and then add the bank's interest rate for that figure - then to it for the next and the next. However, it becomes a significant sum and is worth doing. Why let the bank have it. If you don't want it then I can name some orphanages which would find it very useful.

Is there anything specific in 'The Library' that could help with these calculations? I expect not, as different banks would apply different rates at different times, and it would no doubt be account specific.

Alternatively, would you 'suggest' fast-tracking the 'Charges' element first, and once the dust has settled bringing a second case (requesting disclosure of the bank's rates) for the interest Charges elements?

If this is the case, I would happily donate all of the refunds from the second case to a nominated charity.

To see the steps I took to recover unfair bank charges with the help of Consumer Action Group, please read my thread Spiceskull v HSBC.