Refund Interest Calculation in HFC (Household) Posted July 21, 2019 Hello A major bank (per this thread section) has contacted me regarding incorrect charges that were wrongly added to a loan I had with them back in 2006 which was settled in 2007. In calculating the refund amount, they added simple interest @8%pa (13 years worth) to the repayment. I remember reading somewhere that such interest should be compounded instead of simple. The difference in final amount between the two methods of calculation is fairly significant. I wanted to know if you were aware of the case law(s) or legal principle(s) applicable so as to apply compound interest as opposed to simple interest to the refund amount? Or perhaps you can refer me to something to read? I'd like to request compound interest if at all possible. I don't want to waste time trying to get Compound Interest unless there are strong legal grounds for doing so. Left to them of course, they prefer to pay simple interest as the figure will always be less. Many thanks in advance.