Is this really true?

[thesergeant]

pelvicthrust, bubble,

 

I have claimed contractual interest. What I understand as the basics of it, is that the contract between us and Halifax states that if we take unauthorised borrowing they apply a certain interest rate, if authorised another rate.

 

Therefore if they take money from us (unauthorised) the same interest rates should apply to their withdrawal from our account.

 

The charging of unlawful charges is an unauthorised withdrawal.

 

With contratual interest the rate applies from the date of the withdrawal from the account. I claimed 29.8%.

 

This can make a big difference to any claim.

 

In my claim I adapted particulars from others on this site to give the court alternatives, ie 29.8% or 18.9%, or the court rate of 8%.

 

Hope this helps - Go for it

[thesergeant]

PT,

 

 

I have put three different choices because, IF it goes to court the judge may decide that the unauthorised rate is not applicable, therefore I have given the judge a choice, 29.8%, or 18.9% or 8%.

 

 

My understanding is:-

Your LBA should not include the court 8% interest charge, as this is applicable only once your claim is issued from the County Court. It is applicable because they have declined to settle your claim and you have had to initiate court action.

However if you decide to claim contractual interest then this can be shown in your LBA as part of the amount you are claiming against the bank, as you are charging them interest on the penalty charges they have taken from your account, and it is therefore part of your claim against them.

 

Hopefully this may make it a bit clearer for you .............

 

Here is some of my particulars of claim that may assist you a little in understanding why the three choices : -:?

 

>>>>>>>>>>>>>>>>>>>

 

4. The Claimant contends that:

 

a) The charges debited to the Accounts, as outlined in the attached schedule, are punitive in nature; are not a genuine pre-estimate of cost incurred by the Defendant; exceed any alleged actual loss to the Defendant in respect of any breaches of contract on the part of the Claimant; and are not intended to represent or related to any alleged actual loss, but instead unduly enrich the Defendant which exercises the contractual term in respect of such charges with a view to profit. In the event that the charges are not a penalty, they are unreasonable under The Supply of Goods and Services Act 1982 section 15. The Defendant has declined to justify the charges.

 

b) The contractual provision that permits the Defendant to levy such charges is unenforceable by virtue of The Unfair Terms in Consumer Contracts Regulations (1999) paragraph 8 and schedule 2(1)(e), The Unfair Contracts Terms Act 1977 section 4 and the common law.

 

5. Accordingly the Claimant claims:

 

a) the return of the amounts debited in respect of charges in the sum of £201.00 and interest charged thereon in the sum of £0.02;

 

b) Court costs;

 

c) the additional costs incurred by the Claimant in the writing and sending of letters to the Defendant pursuant to this claim, and the statutory access request in the sum of £12.52, as set out in the attached list of costs.

 

d) the Claimant claims contractual interest compounded daily at an annual rate of 29.8% per annum, from the date of each transaction to 20th October 2006, which is £130.76, as set out in the attached list of charges. The Claimant further claims interest, on the resulting total of £331.78, at the same rate up to the date of judgement or earlier payment, at a daily rate of £0.36 per day.

 

The account’s Terms and Conditions specify the interest payable on unauthorised drawings from the account. The Claimant holds that this applies to unauthorised drawings by the Defendant as well as to unauthorised drawings by the Claimant. Should the court deem this incorrect, the Claimant claims the rate to be justified under the principle of mutuality and reciprocity, and is based on the Defendant’s unauthorised overdraft interest rate that would be applied under the terms of the above mentioned account.

 

Should the court find that this interest rate is not applicable, then in the alternative the Claimant claims contractual interest compounded daily at an annual rate of 18.9% per annum, from the date of each transaction to 15th October 2006, which is £82.62, as set out in the attached list of charges. The Claimant further claims interest, on the resulting total of £283.64, at the same rate up to the date of judgement or earlier payment, at a daily rate of £0.22 per day.

 

The account’s Terms and Conditions specify the interest payable on authorised drawings from the account. The Claimant holds that this applies to authorised drawings by the Defendant as well as to authorised drawings by the Claimant. Should the court deem this incorrect, the Claimant claims the rate to be justified under the principle of mutuality and reciprocity, and is based on the Defendant’s authorised overdraft interest rate that would be applied under the terms of the above mentioned account.

 

Should the court find that this interest rate is not applicable, then in the alternative the Claimant claims interest under Section 69 of the County Court Act 1984 at the rate of 8% per annum calculated from the date of each transaction to 15th October 2006, which is £35.10 and continuing until payment or the date of judgement at a daily rate of £0.10.