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Interest confusion


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Sorry all, but I am totally confused by all the legal mumbo jumbo involved in all this and could do with some clarification on the interest matter...

 

As far as I can tell so far...

 

A) I can't reclaim interest charges that are my own fault (fair enough)

 

B) I can claim money back for unfair charges

 

What confuses me is interest on the unfair charges.

 

We are all clearly in debt and eating into our overdrafts. So we are all going to be incurring interest charges for overdraft use.

 

It is therefore not the unfair bank charge that has put us into our overdraft, because the reason we have got charged is because we were there in the first place...

 

So how exactly do you work out any interest on the unfair charges? (I was already overdrawn...)

 

Also, this info on the overdraft interest of my account:

 

Current Account, Current Plus and Private Bank Account Credit Zone Overdrafts

 

Nominal monthly rate % Nominal Annual rate % EAR % variable

 

1.48 17.73 19.24 19.24% EAR Typical

 

Means absolutelly nothing to me...

 

So confused...

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There are 2 instances of interest you can claim:

 

1.When you go overdrawn the bank will charge you interest, perfectly lawfully.

 

However, if part of your overdraft is made up of penalty fees, they are also charging you interest on these too and it is this interest which you are entitled to claim back, but it's tricky to separate out from the general overdraft interest figure.

 

The Advanced spreadsheet in the bank templates library, attempts to calculate this See here:

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/182-6-interest-calculation-spreadsheets.html

 

It's quite complex and unless your claim is large may not amount to that much, so for simplicity's sake, some people don't bother

 

This is the interest referred to in the preliminary and LBA letters.

 

There is an interest tutorial here:

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/145027-interest-tutorial.html

 

2. Section 69 8% interest on your claim, but only when you submit a claim at court. Don't add this interest before moneyclaim

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Thank you very much for putting it simple terms!

 

I don't think mine will come to much... I'll have a go at working it out though.

 

Keep up the good work!

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