Creation at last ****WON****

[sallysas]

Sending sar off tomorrow so I had better do some research and see how the cookie crumbles. I do feel a bit rusty but I can go for contractual with store cards can't I?

[steven4064]

Yep (I think you can, anyway )

[sallysas]

Information arrived today. I'm having real trouble finding out what rate to charge. Am going for 26.6% (2.2 per month) unless anyone else can give me an alternative.

[steven4064]

Does it give a figure on their website?

[sallysas]

No, I can't find one for this financial year but they started charging me 2.2 towards the end of last last year (so much for being on a debt management plan) so that will do as far as I am concerned. They did 'phone me up within the last 2 weeks and said they were charging me 30% but would be reducing it to 15% so that was the reason I asked and I do make some profit into the bargain if it comes off. Mustn't count chickens and all that...............

 

I tried calling them but can't get an answer on one tel number and told 'the other person has cleared' on expensive 0870 number.

[caro]

What do you mean by contractual interest? I just want to be clear that your understanding is the same as mine. Are you talking about the interest that has been charged on your penalty charges. Do you have a spreadsheet in mind that you plan to use?

[sallysas]

Perhaps I should have said compound interest. Yes I do mean interest on my charges. A statement has just arrived stating 30.9% is their usual rate. I would imagine they have charged me that for most of the life of this account but as I said earlier they appear to have been charging me 2.2% recently when charges were introduced, 30.9% for one month and 15% since then. Hence my reasoning that asking for 26.6% is not unreasonable. I am using the spreadsheet that ukaviator recommended. I just enter the interest rate, date and amount of charge and it works out the interest whilst showing how many days have elapsed since charge. I have amended prelim letter stating I am claiming compound interest. Perhaps I should claim 30.9% and put 26.6% in the alternative (along with 8%) when - if - I end up filing at court.

 

I've only had one cup of tea so not firing on all cylinders. Am I being greedy considering 30.9%. Definately, maybe...............

[steven4064]

2.2%/month is 30%/year

[sallysas]

Oh, no it's not (I think). I multiplied it in my head adding up to 26.6% when it should have been 26.4%. Have I not calculated correctly with you saying 30%? Oh well, letter gone off now. See what happens.

[ukaviator]

Hi Sallyass

 

If you are claiming Compound Interest then you should use the current rate it says on your statement. Sometimes there are 2 rates, one for cash advances, and the other for spending with your card. If you do have 2 rates, then you can average the two and add that to every charge on your spreadsheet.

 

If you do claim compounded interest, you can't claim 8% as well, it's one or the other. If you ask for both you could have your claim thrown out for unjust enrichment.

 

If your actual APR is 30% a year, then that amount is what you ask for in Compounded Interest. After all it is the amount that they have charged you.

 

I would also file your claim with the N1 form, and don't use MCOL, as they will automatically stay your claim.

[steven4064]

Oh, no it's not (I think). I multiplied it in my head adding up to 26.6% when it should have been 26.4%. Have I not calculated correctly with you saying 30%? Oh well, letter gone off now. See what happens.

It's 30% because it's compounded. 2.2%x12=26.4 as you say, but that isn't how you work out compound interest. The formula is

 

(1 + 0.022)^12 - 1 = 0.298 = 29.8% (as near as makes no difference to 30%)

[sallysas]

So that's how it works, thanks Steve. Oh well, if they don't give me a refund in 2 weeks I will ask for 30% next time.

 

UK, thanks for looking. I meant giving the judge 3 alternatives, 26.4% or 30% or 8%. Creation has just one rate of 30.9% for everything on my card. I was just trying to not be too greedy as they stopped charging me interest for a while and are apparently only charging me 15% now. Why should I do them any favours though as you rightly pointed out they charged me the going rate.

[babygirl10873]

i also have a problem with creation had this account for a good 8 years. i am a single parent been in collage and uni for most of them. i just have noticed that they have been charging me payment protection only noticed it recently because its almost as much as my interest which is silly and when i told them i was struggling they told me about the protection when i got a copy and called them they told me they needed evidence i was on job seekers but can not claim as at uni. i am going to ask for my protection back although they said on the back of the statement no payments will be refunded. found your post intresting can i claim back any of these silly interest rates.

[sallysas]

Any excuse will do won't it!!!!! Can't claim 'cos you're not on jsa - pull the other one. You have been missold a PPI. Go looking for PPIs which I think you will find in the general section or there may be an entire section on it. CAG member 'Nightmare4banks' is very knowledgeable on this subject so why not look for threads started by him. Have you started your own thread? Don't let them bully you - just get even.

 

http://www.consumeractiongroup.co.uk/forum/payment-protection-insurance-ppi/131585-legal-question-ppi-credit.html

 

Have found this by him which you might find useful.

[sallysas]

Just received a letter thanking me for my 'phone call!!!!!!!!!! (what!!!!!) They will look into my complaint and respond within 15 days. Oh well, the interest rate will go up then.

[steven4064]

.... 3 alternatives, 26.4% or 30% or 8%.

THe 8% is only simple interest though. The others can be compound.

[sallysas]

True Steven, but I don't want the judge to think I am being greedy only going for compound. I am planning on just going for 30% in my next letter so the 8% will only appear on my N1 as an alternative. Were they charging one rate for cash withdrawals and a lower rate for amount outstanding I would have put 3 rates for the courts consideration but as they only have one rate for everything that is what I shall be claiming.

 

I have noticed (different subject) that you have your natwest claims resting as it were. Are you waiting for the test case to be resolved before submitting another claim to avoid it being thrown out as an abuse of court time, because this is what it says on one of my claims as I now have 2 cases in pipeline for same bank. Or am I getting my knickers in a twist for nothing? What I am hoping is that both cases will be looked at together in the fullness of time which must cut back on time allocated by the courts but we can assume that the banks will settle before any future court date as they did in the past.

[steven4064]

I have 2 NW claims on hold - the first is for my business account which is only a couple of charges whih I was going to use to test out some stuff on componund interest which has now been overtaken by events. i will probably drop this claim. The other is my son's credit card claim which is on hoold just because I have got too many other things going on. The same is true of the Next claim.

[babygirl10873]

i have also had major problems with creation, one of the problems was they put protection on and i never realised it. I only noticed it when it was almost as much as the protection they charged me. have since cancelled it in writing but they still found a way to get another payment did not get there in time they said. i argued this as i know it was there the day before next bill was printed but to no avail. however have since written to them to ask for SAR think they should send me the contract i signed. I spoke to the Ombusman about this and they said this company was not regulated untill 2005 and athough ive been paying insurance since at least 2003 could only try and claim from date of regulation. whilst on this subject does anyone know if i could argue the intrest rates they are charging its now 39.5% and i know thats not what i agree to and if I cant argue this does this mean they can basically charge what they want and as long as you owe them money you have to pay what they say surly something can be done carnt it. sorry I have used your thred but didnt know how to do a new one. but hope some of the info is relivent to you. plus will be intresting on the outcome. I also found out all the money i did pay in protection would never have even covered me because i was a student and not in work. will keep you updated on what happens next.

[steven4064]

Hi babygirl

 

If they have added charges to your account (eg for late payemnt) you should claim those back and possibly claim back all the protection (PPI) payemnts as well if you can show that the insurance is no use to you - ie it was mis-sold. The fact that they weren't regulated until 2005 is not relevant as far as this is concerned.

 

Unfortunately, they can increase the interest rate at will provided they give you warning in writing. If this is a store card, see if you can move the balance to another credit card with zero rate for transfers.

[sallysas]

Hello people - did you miss me? I've been a bit busy sorting out group appeal against single status but I'm back now.

 

Had a letter from creation yesterday stating they do not agree with the OFT statement of 5 April 2006 but purely as a gesture of goodwill they have credited my account with the sum of £63 being the difference between what I am claiming and the £12 they say they are entitled to charge me. With my compounded interest rate now at 30% (thanks Steve) I am now claiming over £750. Dare I risk their wrath by telling them to take back their credit and cough up what they owe me? Letter going in post tomorrow.

[sallysas]

Their letter was marked 'without prejudice' so I have decided to ignore it in my reply as I can't show it in court - or any reference to it. Will just have to assume they have the wit to take off the credit when they cough up.

[steven4064]

You can try telling them to take it back. Alternatively, acknowledge that you have received it but tell tem that you acceptit as a part settlement only and intend to carry on the claim for the rest, to court if necessary. Then go on to the next stage.

[papadak]

I going after Creation also (Selfridges card) They've sent statements through but have left out a number of months, which i'm asking for too. They do drag their feet but we'll get there ....

[steven4064]

Keep going papadak - we will follow your progress on your thread http://www.consumeractiongroup.co.uk/forum/store-cards/126200-selfridges-charges-re-claimable.html

 

(I'll get a mod to change the title now you know the answer to the question )