I have sent a preliminary letter to claim £658.00 in charges and 317.73 in OD interest from RBOS.

Fingers crossed

Letter sent 25/04/06

Could you just clarify that again - £317 in overdraft interest, solely due to the charges imposed?

That seems very high against the level of charges you have shown.. £658

Are you sure that you have not claimed for 8% interest by mistake?

I did have an overdraft on my account and this is the interest i have paid for the past 3 years. Have i misunderstood and can not claim the interest from my overdraft.

You cannot claim interest for your overdraft, only interest that they have charged on the unlawful charges!

(if that makes sense!)

oopps should i send another letter with just the charges and not the interest for the overdraft

I think it may do you good to rectify this early on.

On your new letter, state that this request superceeds the previous one dated xx/xx/xx.

For your reference..............

There is often a lot of confusion regarding interest - not least because there are effectively 3 types that are referred to....

(1) You can claim for the interest that the bank applied to your account solely due to the charges, i.e. NOT for general interest which occured simply because you had gone overdrawn.

This, in my book anyway, is more complicated to work out because you should ideally know what APR they charged you for general overdraft rates and for 'over limit' rates - unless, of course, you are one of the 'lucky' ones whose statements break this figure down for you.

It can also be argued that by not claiming this (possibly much smaller) figure, that you are allowing the bank an amount you consider IS proportionate to the costs it incurred dealing with your failed Direct Debit / Cheque etc etc.

If you had to face the enemy in court, you would at least have an arguement to show you have allowed for actual cost. Remember though, you do not have to give them it.....

The choice is yours........

(2) If your case gets to the stage of court action, AND ONLY IF IT DOES, then you may claim 8% interest on each and every charge made - this is also from the DAY the charge occured.

Use the spreadsheet in FAQ section (or the new online calculator) which works this out for you - very simple indeed.

(3) Additionally, we can finally complicate matters by sticking on interest on a daily basis from the time the court case is started until settlement.

There is also a calculation for this in FAQs.

If you don't understand these, it is VITAL that you spend more reading through the FAQ section. You are either about to, or have already started, a legal process to recover funds from a large financial institution - do not do so lightly - even if the evidence suggests that it is an easy process.

Good luck...!!

Thanks for your help. I will have to put my maths head on and calculate the interest owed to me.

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