Thread: interest mistake...

Hi Kazzy,

I hope I have understood what you have done - try again if I have missed the point!
The amount you can claim at the point when you issue Court papers can be considerably higher than the amount in your lba etc. THe interest that is added by the spreadsheet, is the 8% daily rate of interest that the Court can apply to the debt. Until you apply to Court, you cannot claim that interest.

Your original claim should be for the charges applied (direct debit returned, over limit on overdraft etc,.) and, if you used the more complicated version of the spreadsheet, you can also claim the little interest entries you mentioned. It is essential that you check which of the spreadsheets you have used, as this bit of interest, is where most people get confused and make mistakes.

Hope this helps - post back if you need more clarification.

Ok people - this is getting misunderstood by most of us until we see the explanation in the complex sheet., I cannot locate the link so I have copied the first sheet from exel and hope this helps to clarify - you cannot enter the interest charges in the same list as the Total Charges (or any others like d/d return fee or excess overdraft).
Have a look at the details below and let me know if this helps.
It will be ok - we had to redoo 6 year's worth on 2 accounts before we got it right. Many people do not bother with the interest charges because it is SO complicated.
good luck,


CALCULATION OF PENALTY CHARGES AND INTEREST CHARGES UNLAWFULLY DEDUCTEDEnter your full name in capitals in the box below:Enter your bank's full name in capitals in the box below:Enter your sort code below:Enter your account number(s) below:Enter the start date in words of the period covered in the claim in the box below:Enter the end date in words of the period covered in the claim in the box below:The penalty charges listed should only be charges that have not been specifically agreed with the bank.Interest is charged by the bank on any overdrawn balance. It is argued that had the penalties not been charged then the balance would be less overdrawn or even not at all, giving rise to a lower interest charge or none at all.(It could also be argued that if you had had the extra money you'd have spent it and therefore been overdrawn on another occasion anyway, but then, you never had that opportunity.)The interest on penalties calculation aims to demonstrate an estimate of the interest that would not have been charged had the penalties not been applied. If the bank disagrees with the calculation it is up to them to provide a more accurate figure.The following should be considered when using this estimated calculation:The calculations do not compound the interest, i.e. interest on previous unlawfully charged interest has not been included.Charges are deemed to have been applied to the whole of the month in which they have been charged.The date of the interest charged is arbitrary as the interest is a more complex calculation processed by the bank using a daily basis.The larger the balance of interest on penalties to be claimed, the greater the weight to the argument stated in bold above. The argument is stronger than the calculation!How to use this spreadsheet….Please enter all data as carefully as possible as any errors made will affect the calculation.Use a separate spreadsheet for each bank account if you are claiming on more than one account.The turquoise boxes on the left hand side are for penalties you have been charged in the last six years. Enter the date appearing on the statement along with any detail given, and the amount in columns B, C and D accordingly. Do not enter any interest youThe turquoise boxes on the right hand side are for any interest you have been charged in the last six years. You need to enter a date, amount and account balance in columns G, H and I accordingly. The best date to use for the interest, is the last date ofIf you have an interest-free overdraft facility, and you are only charged interest on any overdraft over and above this amount, enter the amount of that facility in column J as at the date in column G. Enter this figure as a positive number.If any penalty charges or interest have been refunded enter both the charge and the refund with the relevant dates.All entries MUST be made in date order starting with the oldest date at the top.An estimate of previous penalty charges can be entered in the brown box if charges have been applied before the six year period. This entry is inferred by the argument in bold above.Delete all unnecessary cells and rows as all calculations run to row 777 and will print if not deleted. Preview the pages first if you are unsure.CALCULATION OF 8% INTERESTThis interest is calculated and claimed only when a court claim is raised.The date will always read today's date unless you change it. If you need to re-enter the formula for today's date, copy and paste it from the cell below this one.31/08/2006The 8% is taken from section 69 of the County Courts Act 1984."

I must apologise to the original creator of this amazing spreadsheet for not naming her hear - it's brilliant!