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Hi
Been helping my brother in law claim against Lloyds,gave him all the template letters etc from the library. He got lloyds defence back today containing standard 9 points and the following point.
"Furthermore,the claimant's claim appears to be misconceived in that the Claimant is seeking a refund of overdraft interest. There is no claim for refund of the authorised rate interest as it is contractually due and is a core term of the agreement between the bank and the claimant.As such the defendant denies that they are indebted to the claimant for the sums claimed under this heading.
The defendant will rely on the case of Emerald meats (London) Ltd.-v- AIB Group (UK) Plc [2002] EWCA Civ 460, which is authority for the proposition that a customer entering into overdraft arrangement could expect to pay interest on the basis of the standard practice adopted by the Bank"
I hadn't actually seen his charges until today and it's not a large claim by comparison - £574 in total. Can anyone advise the next step please?
Thanks
As far as i am aware, you can only claim for overdraft interest if you can prove that it was the charges that caused you to have to apply for an overdraft facility.
I am, however, no expert and can only offer advice based on what i have learnt along the way whilst claiming myself.
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You may receive differing advice as people have had different experiences. Please use your own judgement in deciding whose advice to take. If in doubt seek advice from a qualified insured professional. Any advice I offer is done so informally, without prejudice & without liability.
Along with the A.Q is a form offering court mediation without attending a court hearing in order to settle the dispute which takes place within the next 28 days. Is this new for the banks?
But in replying this has 'bumped' your thread back up and hopefully someone else will be able to give you an answer.
:?
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You may receive differing advice as people have had different experiences. Please use your own judgement in deciding whose advice to take. If in doubt seek advice from a qualified insured professional. Any advice I offer is done so informally, without prejudice & without liability.
You may receive differing advice as people have had different experiences. Please use your own judgement in deciding whose advice to take. If in doubt seek advice from a qualified insured professional. Any advice I offer is done so informally, without prejudice & without liability.
Barty thanks,a great help. Back to their defence, is there a response regarding their point? Would appreciate any kind of assistance/advice.
Many thanks
Thanks for the replies, but is anyone able to help with a reply to the defence regarding this point? aq to be returned by 12th may. Thanks
"Furthermore,the claimant's claim appears to be misconceived in that the Claimant is seeking a refund of overdraft interest. There is no claim for refund of the authorised rate interest as it is contractually due and is a core term of the agreement between the bank and the claimant.As such the defendant denies that they are indebted to the claimant for the sums claimed under this heading.
The defendant will rely on the case of Emerald meats (London) Ltd.-v- AIB Group (UK) Plc [2002] EWCA Civ 460, which is authority for the proposition that a customer entering into overdraft arrangement could expect to pay interest on the basis of the standard practice adopted by the Bank"
Hi
This is a claim my Brother has made,I gave him all the templates etc.He claimed for everything that said charge i.e O/Draft excess and O/Draft interest. He has now thrown this on to me to try and sort,given me all his paperwork etc but I'm stuck on responding to this and quite honestly don't know how to other than quote mutuality and fairness.
Getting tied in knots reading all the threads on interest. Would really appreciate some help on this.
Well, I'm definitely no expert, but I do know he can't claim O/D interest. Mutuality and reciprosity relates to contractual interest, nothing to do with o/d interest. To be honest I don't know if you will have to ammend your claim or not but it is possible to do this. It costs £35 and that money can't be added to your claim. I'm sure someone will be along soon to help. Don't worry too much. I have seen threads where other people have done this and still got through it all OK. Just can't remember how. May be worth asking someone in the chat room. Good luck
dont worry about pmming me the way i see it is that the banks do have the right to charge us a set interest rate for an overdraft we agrre to this as a form of load as the case they quote is loosley refering to though that is to do with when interest should be paid to a customer who pays funds in via a cheque and bank duty cycles on clearing said funds
the argument i would look at putting forward is that due to the charges it is what has put you into the overdraft and if from the first charge being deducted only a true cost was taken then you would not have been into an overdraft to warrant paying the overdraft interest
and though you agree that you should pay interest on your borrowing from the bank in the form of an overdraft the amount you are claiming back is how you believe the interest was charged due to the charges and if such is not the case then the defendant is more than welcome to figure out what the interest is on the amounts it has unlawfully deducted from the account over the period of time from when the first was taken until now as they have the resources to figure out a complex matter such as interest far easier than what you as a Lit in person does.
I am sure if you have a fair minded judge they will go for this also the banks havent as yet entered a court building to defend their charging regime they just like trying to throw wheight around and scare people so they settle for less than what they were claiming for
the following is a link to a web archive of abbey websites over the time click on month under year to access Abbey's site for that time period to get what the terms and conditions were for when you opened your account Internet Archive Wayback Machinehope it helps or here for where i have started to pull them out to http://www.consumeractiongroup.co.uk...web-pages.html
Advice & opinions given by me are my views or how i would respond, and are not endorsed by the Consumer Action Group & are offered informally, without prejudice & without liability. Your decisions & actions are your own - if in any doubt, seek the opinion of a qualified professional
small update
Re my Brothers claim, he wants to submit new schedule of charges omitting the O/D interest in light of Lloyds defence re "Emerald meats" post#8.
Can he do this? It's quite a small claim £435 O/D excess etc + £138 O/D interest and he's losing confidence.
If he's already filed a court claim, he'd need a formal amendment to change anything. If he hasn't filed yet he can obviously change the value yes.
As has been said, you have every right to reclaim any OD interest that was levied solely as a result of - I.e on top of - each penalty. Any interest levied on a penalty is part of the penalty. You just need to work out which proportion of the total interest is attributable to the penalty charges.
If he's just added the whole lot of OD interest, then obviously most of it is probably not claimable.
I would'nt worry too much. They will probably just omit the interest when they offer to settle.
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Thanks for that Gary, I think he's just losing it a bit cos it's not a huge claim. I'm doing what I can here with everyones help. Newbody gave me some pointers in his post and I have the aq here.
Is there a typical response to their defence point by point, as I will send a copy to the Solicitors also. Would appreciate some help with this .
many thanks
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Any advice or opinion is offered informally & without liability. Use your own judgment and if in doubt seek advice of a qualified and insured professional.
Gary,thanks for the links and your help.Have completed aq,enclosing the draft order.
As a matter of interest,I looked up the case law regarding Emerald meats-v-AIB Group. How strong is that as Lloyds defence? Any thoughts?
Its irrelevant. You are not disputing that they are allowed to charge you interest.
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Any advice or opinion is offered informally & without liability. Use your own judgment and if in doubt seek advice of a qualified and insured professional.
lloyds defence 10 point ****WON****
,gave him all the template letters etc from the library. He got lloyds defence back today containing standard 9 points and the following point.
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Re: lloyds defence 10 point - help required
Re: lloyds defence 10 point - help required
Re: lloyds defence 10 point - help required
