I have charge dating back to Dec 2000

the charge £20

Constantly in overdraft

Do I work the compond out as 20 + compount interest of 18.25% ?

6.1 years

20 + 35.42 compound int = £55.42

then work down the charges in the same manner?

You can try, but think about the argument that you have to make to justify compound interest. This is not generally allowed in payment actions North and South of the border.

Judicial interest is applied in order to compensate the plaintiff/pursuer for the interest they could have received had the money not been wrongfully witheld from them. It is set at 8% for a reason. Indeed, given interest rates on savings accounts generally, 8% is generous.

The fact that the Bank may have charged you interest at a higher rate does not mean that you are entitled to interest on a claim at that rate.

The claimant must be a legal argument to justify this, so far on the site I have yet to see anything which would succeed in court. Indeed, claiming such a sum may justify a strike out application, leading tomore work and possible costs against the claimant should they lose on this point.

The claimant must be a legal argument to justify this, so far on the site I have yet to see anything which would succeed in court.

There are successes on this forum though?? Some people must be putting up a good argument?

There is a difference between what Banks may agree to settle on for commercial reasons and the law that applies to the matter and would guide the decision of a Sheriff. The arguments suggested on this forum are not ones which the law, in its current state in England & Wales or Scotland, would recognise.

Some Banks seem more willing than others to settle these points, but there are certainly one or two who are requiring the plaintiff/pursuer to prove their cases in respect to these parts of their claim.

I have template spreadsheets in my Chambers that ettempt to apportion any interest you were charged between the accumulated penalty charges to the date the interest was applied, and True overdraft.

You cannot apply a rate to the charges and arrive at a claimable figure easily at all. You will be likely to exceed the amount of interest they charged you in the first place.

More notes in Chambers on this.

Good luck.