Why is no one claiming the contractual rate of interest???

[bill-k]

Did you like Mad Nick's binomial progression, then Paul ?

 

I reckon that's why he's called Mad Nick. AAAAAAAAAhHAHAHAHAaaaaa !!!!

 

Yeah - I'd let it lie if I were you !!! Just let Mindzai, Vamp, and the spreadies worry about that, mate !!

[e28bigalbexley]

Both work out the compound interest on a charge, C for N days as C x (1+DR)^N - C

 

But FWIW the difference is the way they calculate the Daily Rate (DR). Given an APR of i% there are two ways of calculating the daily rate which you then apply compound to a charge :

• precise (Mindzai) Daily Rate = (1+i)^(1/365)-1
  
• approx (Vampiress) Daily Rate = i/365

The approx is reasonable because the Binomial series expansion is :

(1+x)^n = 1 + nx + n(n-1)/2!.x^2 + n(n-1)(n-2)/3!.x^3 + ……….

When x is small, only the 1+nx is significant. Hence (1+i)^(1/365) ≈ 1 + i/365.

 

 

Duh you just beat me to that Nick i'd been working on that for days:p

[e28bigalbexley]

Did you like Mad Nick's binomial progression, then Paul ?

 

 

IM gonna get one of the moderators to have aword with you using language like that:eek:

[Mad Nick]

Mad ? I'm completely bonkers.

 

But there is a hidden message - we can all parrot the advice we read but unless we understand it fully there is a risk that a Bank will make us look stupid in front of a Judge. Which helps none of us.

 

Towit (or should that be twit ?), where is the legal justification for the phrase "mutuality and reciprocity" ? By the way, don't answer that on this thread - if you know the answer, see post #9 on here http://www.consumeractiongroup.co.uk/forum/abbey-bank/49008-mad-nick-abbey.htmland and drop me a reply. Ta.

 

Regards, Mad Nick

[bill-k]

...we can all parrot the advice we read but unless we understand it fully there is a risk that a Bank will make us look stupid in front of a Judge. Which helps none of us.

Hear, hear, Nick. Me & spreadies couldn't stand each others' company until I got into this lark. I've made a point of learning because, as you suggest, they will test us and make us look stupid if they can. And spreadies & formulae are their stock-in-trade.

 

I have always taken it that the principle of mutuality and reciprocity is quite simply the principle upon which all contract law is built. I have always taken it to be a pervading spirit as opposed to a tangible statute.

[millymollymoo]

bill-k your aviator is fab hello mrs bill-k:)

 

Milly:)

[bill-k]

Thanks, Milly. Apparently Chezt was at our little Hogmanay gatherin' and took the snap.

[millymollymoo]

Fabuloso:D . Here bill-k I have started up a thread concerning claiming contractual on my O/H's bank account that purely consists of charges.Peeps like me are a bit:confused: and the question is as the debt has not been repaid, its noy your money to claim interest on. However if the debt was paid up then you could????

 

Now do not go bananas:D ha ha

 

Milly X

[Sexyeyes83]

Would anyone be able to answer a qucik question regarding interest on on the v1.8 spreadsheet please.

 

When I add up how much interest the bank has charged me on my statements, it adds up to £110, however when I put these figures into the spreadsheet it brings up a figure of £101.56 :idea::idea:

 

EG:

 

Interest Date - 12/03/2002

Interest Charged - 0.39

Account Balance - -42.79

Interest Paid on Penalties - £0.09

 

Interest Date - 09/04/2002

Interest Charged - 0.63

Acount Balance - -53.79

Interest Paid on Penalties - 0.24

 

The spreadsheet seems to be adding up the "Interest paid on penalties" and not the "interest charged" section.

 

This throws up a problem when I goto write my prelim letteras the figues wont match with the spreadsheet I send them.

 

On the letter I will say I have been charged £555 bank charges + £110 interest, but the spreadsheet will show up £101 interest.

 

Any help is greatly appreciated

 

Sabrina

[photoman]

It is probabbly because of this. The spreadsheet is desgned to calculate what portion of the interest you paid each month that was DIRECTLY AND ONLY as a result of the charges. ie. you would not have been as overdrawn had you not had the charges, so would not have paid as much in overdraft interest.

HOWEVER.........REMEMBER...not all the overdraft interest you paid each month was as a result of the charges, some of it was due to other spending, so the interest on that portion of the overdraft is legitimate.

Thus you may have paid £110 in interest, but only £101 was as a result of the charges.

[Sexyeyes83]

It is probabbly because of this. The spreadsheet is desgned to calculate what portion of the interest you paid each month that was DIRECTLY AND ONLY as a result of the charges. ie. you would not have been as overdrawn had you not had the charges, so would not have paid as much in overdraft interest.

HOWEVER.........REMEMBER...not all the overdraft interest you paid each month was as a result of the charges, some of it was due to other spending, so the interest on that portion of the overdraft is legitimate.

Thus you may have paid £110 in interest, but only £101 was as a result of the charges.

 

Thanks for your reply.

 

I went overdrawn by £42 back in Jan 2002. Since then Nationwide have applied £555 in bank charges and £110 interest.

 

Since I went overdrawn I have paid in over £450 and not withdrawn anything. The interest on my acount is purly due to bank charges.

[photoman]

Whhhhhhhhhhhaaaaaaaaaaaattttttttt........£555 in charges for a £42 overdraft !!! The thieving b********s !!!!

My response was only my theory based on a guess, I suggest you see if someone like Vampiress, Bill-k, or Mindzai would take a look at your actual spreadsheet. Good luck !!

[MilkTrayMan]

Hi Sexyeyes83!

I have PM'd U + e-mailed U

I have stated EXACTLY the same as photoman...but have add slightly more detail. i.e. Actual figures and the effects of rounding etc

I have re-emailed U the same e-mail I sent last night!

Unfortunately work have work commitments now...

Best of Luck

Let me know if U are still confused!

Hope this has helped?!

[Mindzai]

Thanks for your reply.

 

I went overdrawn by £42 back in Jan 2002. Since then Nationwide have applied £555 in bank charges and £110 interest.

 

Since I went overdrawn I have paid in over £450 and not withdrawn anything. The interest on my acount is purly due to bank charges.

 

The spreadsheet will probably be taking into account the initial £42 that put you overdrawn in the first place. As this was not a charge, you are not entitled to claim the interest incurred on this amount.

 

When did you pay in the £450?

[Sexyeyes83]

The spreadsheet will probably be taking into account the initial £42 that put you overdrawn in the first place. As this was not a charge, you are not entitled to claim the interest incurred on this amount.

 

When did you pay in the £450?

 

Ah, I see!

 

I went £42 o/d Jan 2002. I paid £450 in over numerous years. Heres some below:

 

£30 May 2003

£30 June 2003

£20 July 2003

£20 Jan 2004

£50 March 2004

£20 April 2004

and so on....

[cherminate]

Please could s.o help? On my statements it advises that interest rates are 1.5976% on retail and cah how would this translate to put in my compounded contractual interest rate spreadsheet. Sorry maths was never my forte.

[millymollymoo]

Whhhhhhhhhhhaaaaaaaaaaaattttttttt........£555 in charges for a £42 overdraft !!! The thieving b********s !!!!

My response was only my theory based on a guess, I suggest you see if someone like Vampiress, Bill-k, or Mindzai would take a look at your actual spreadsheet. Good luck !!

 

Hi if you think thats bad try this for my O/H with Natwest a mind boggling £1742 :o :o :o in charges and interest to date!) from ONE original charge putting over his £250 overdraft.

 

Milly X

[millymollymoo]

P.S thats direct from his statements as well. We havent done the spreadsheet for this one to calculate contractual as we are not sure if he can claim it as its made up purely of all their charges and he has not paid them anything yet. The account was supposed to have been frozen 18 months ago. However, is growing and growing!!!!

[MilkTrayMan]

Hi and Happy New Year millymollymoo!

 

Hi if you think thats bad try this for my O/H with NatWest a mind boggling £1742 :o :o :o in charges and interest to date!) from ONE original charge putting over his £250 overdraft.

 

Milly X

 

What is it with women???...lol...

SIZE doesn't matter!...does it???...rofl...

(...soz just couldn't resist it!...lol... )

[MilkTrayMan]

Hi Sexyeyes83!

Have re-sent U my original e-mail again.

...Have sent U a PM with a copy of it pasted.

...Have lit hilltop beacons.

...Have sent U it by semaphore

...Have had it posted on the side of buses.

Don't know what else I can do???

I would even give U the difference myself!!! (...only kidding folks!...lol)

It's probably irrelevent info now

...But I DID try to help U understand...Honest!

[Sexyeyes83]

Hi Sexyeyes83!

 

Have re-sent U my original e-mail again.

...Have sent U a PM with a copy of it pasted.

...Have lit hilltop beacons.

...Have sent U it by semaphore

...Have had it posted on the side of buses.

 

Don't know what else I can do???

I would even give U the difference myself!!! (...only kidding folks!...lol)

 

It's probably irrelevent info now

...But I DID try to help U understand...Honest!

 

Hey Milktrayman!

 

Got it this time and now understand it 110%

 

Thanks again!

[MilkTrayMan]

Got it this time and now understand it 110%

 

Phhhhewww!!!...Thank God for that!...lol...

 

All I need now...

Is for someone to explain it to ME!!!!!!...lololol...

[bill-k]

.....would you care to share it with us ?

[MilkTrayMan]

Hi bill-k!

 

.....would you care to share it with us ?

 

Sure no probs...

Just send a £10 P.O. with your S.A.R. Letter.

Address it to my Data Controller and enclose documentary proof that U R sexyeyes83!...rofl...

P.S. If by any chance the data requested is on Microfiche, there will be a further charge per statement, caused by the manual intervention to recover the said information.

...this will be subject to a clarifying visit by the Information Commissioner first...lololol...

[bill-k]

Sorry mate - I just thought you might have needed something explaining. If it's personal stuff, then do forgive me for being nosey !!

 

I think I'll pass on the S.A.R - (Subject Access Request), BTW. I doubt I could impersonate Sexyeyes, and really don't fancy waiting 40 days for the juicy bit of of info.

 

My apologies. As you were.

 

Carry on, chaps !!!