OdaPacket v Barclaycard

[bong]

Hi there,

the formula {claim x 0.00022} is for 8% simple interest.

Technically you can't put in a correct daily rate for compounded interest because it increases each day. What you could do is taking your spreadsheet, see how much interest is owing at todays date, then change the date of the spreadsheet to tomorrow's date and the difference will be one day's interest. If you use that figure be aware that over the course of several days you will be claiming less than the spreadsheet is calculating but the difference won't be much and the bank would only have cause for complaint if you were claiming a higher figure, not lower. I hope that makes sense.

There is another way of doing it, and that is not to state the daily amount, but to state "compound interest at the same rate up to the date of settlement." You will then provide the total when you are nearing settlement. This is the method I have chosen.

[bong]

As far as I know, contractual interest would be compounded because that is the method used by the banks, and we are applying the same method to our claims. What makes you think the interest you have calculated is simple? If you are right, then to find out the daily rate at 18% you would multiply your total claim (excluding contractual interest) by 0.00049 (18 divided by 100 divided by 365)

By the way, you don't need to notify me when you make a reply to this thread, once I have made a post in it I am automatically subscribed (unless I opt out of that in my personal settings) and get automatic notifications of all subsequent posts.

[bong]

I wouldn't worry then OP, from the description of the spreadsheets you are doing fine. I don't have experience of Vamps google spreadsheets - so just ignore me. The calculation I gave before still stands though.