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

[newbody]

key-arguments-against-compound

 

think this summaries the key posts from this thread and some others

[geedels]

I've been grappling for days with contractual interest. Whether it is fair or greedy to ask for it etc.

Now I've got an easy question:

Barclaycard on their statements don't seem to mention authorised or unauthorised, they talk about 'cash annual rates' (27.9%) and 'purchase annual rates' (19.9%). Which one should I be thinking of claiming?

[newbody]

A credit card wont list it as authorised and unauthorised rate

 

as it operates in a different manner to banks but for the purpose of CI claims it is generally used as cash advance is the equivelent to unauthorised as it is them advancing you good old hard cash

 

and purchase rate is deemed authorised rate as you dont see the money you just charge it

[geedels]

Thank you. What a lot of jargon...

[lellypea]

Jus back from workin away 2 days.

 

Hi Photoman - Info you gave me in post 1738 is really helpful - that's 2nits 'homework' - and also Tim 1740.

It really is like a game of Battleships... picking ur way thro a minefield.....most things uncertain .... a matter of considering all angles ...choosing next step on that basis (hoping uv not 'sunk' yourself!!)...and reviewing again before next move.

 

For someone like me - an most wud think - like the assurance of seein a clear safe path start 2 finish! But - not to be.... Eeeeekkk!!! Know I've a lot to absorb. Gonna start by completing spready an seeing where I am figurewise.

 

Thanks for hovering in the wings!

 

Cheers

 

Lel

[newbody]

For thoose of you more used to legal arguments and analysing things reading through a case and saw this extract now to me it reads as if there is a certain duty emposed upon the banks if so do you think this would hold water in proving they have this duty to us

 

75 ) That is the point on which I have found this appeal more difficult than the rest of your Lordships. If this issue affected only banks, I would be slow to conclude that there could never be liability for carelessly failing to comply with a freezing order. Banks are already subject to strict regulation and potential sanctions in connection with money-laundering and similar activities. They are enjoined to know their customers. They become liable for breach of fiduciary duty if they shut their eyes to dishonest dealings by their customers. VAT (and PAYE) collected on behalf of HM Revenue and Customs by trading companies is not trust money, but banks cannot be unaware that VAT (and PAYE) collected in this way is often not properly accounted for, through fraud or mismanagement. There is a public interest in banks responding with particular care, promptness and vigilance to any freezing order obtained by HM Revenue and Customs.

 

 

case : [2006] UKHL 28 on appeal from [2004) EWCA CIV 1555

 

Her Majesty's Commissioners of Customs and Excise (Respondents)

v.

Barclays Bank plc (Appellants)

[TANZARELLI]

Newbody do you have a link for this?

[tim2718281]

I've been grappling for days with contractual interest. Whether it is fair or greedy to ask for it etc.

Now I've got an easy question:

Barclaycard on their statements don't seem to mention authorised or unauthorised, they talk about 'cash annual rates' (27.9%) and 'purchase annual rates' (19.9%). Which one should I be thinking of claiming?

 

If they require you to pay in cash, then the cash rate seems right; if they let you pay in goods, then the purchase rate would be relevant.

 

Tim

[BreezyDay]

Would someone be able to have a look at my thread (#3) and answer my query in relation to CI please.

 

Many thanks

__________________

Breezy

Breezy v Halifax

[un1boy]

Hello,

 

I am starting a claim for my dad pre 6 years and want to add CI - II would appreciate help witht he CI though if poss?

 

Here is the thread:

 

un1boy's dad vs natwest - over 6 years (possible exemption from Limitations Act?)

 

 

Thanks in advance! :)

[Stornoway]

Hello,

 

I am starting a claim for my dad pre 6 years and want to add CI - II would appreciate help witht he CI though if poss?

 

Here is the thread:

 

un1boy's dad vs natwest - over 6 years (possible exemption from Limitations Act?)

 

 

Thanks in advance! :)

I have completed spreadsheeets, prelim, LBA and N1 for contractual interest - PM me if you want copies.

[iloveguinness]

Hi

 

Could someone please tell me whether I still add to my spreadsheet the interest charged on months I didn't pay any penalties???

[iloveguinness]

Its ok I've worked it out, its just the first interest following the charge, not them all

[un1boy]

Ok guys - I have put the charges in the spreadsheet, changed the 8% to their unauthorised borroeing rate and put the total amount in my prelim, is that right?

 

Also, what are their defences likely to be regarding claiming CI as it makes my claim 8k!! I am scared they will make it go to court and I will be liable for costs then!!

[un1boy]

I have completed spreadsheeets, prelim, LBA and N1 for contractual interest - PM me if you want copies.

 

Sorry, just seen your post - I've PMd you mate.

 

cheers

[TideTurner]

un1boy,

 

Who needs to be scared? You, or them?

 

Tide

[un1boy]

un1boy,

 

Who needs to be scared? You, or them?

 

Tide

 

I guess they do - but the whole CI issue is a new one and I want to anticipate their defence, that's all....

[TideTurner]

OK, so you go in high and get shot down. This interest has been charged against your account, and they have enjoyed it, and in contract law, all actions have an equal and opposite reaction.

[un1boy]

OK, so you go in high and get shot down. This interest has been charged against your account, and they have enjoyed it, and in contract law, all actions have an equal and opposite reaction.

 

Oh, I see - nice one! Thanks mate

[BigFatGreedyBanker]

Hi

 

Could someone please tell me whether I still add to my spreadsheet the interest charged on months I didn't pay any penalties???

 

Its ok I've worked it out, its just the first interest following the charge, not them all

 

You add all the overdraft interest they've charged you in all months since the first charge, regardless of whether you've been charged in that particular month or not. The SS then works out how much of it is claimable.

 

HTH

[lucid]

Ok guys - I have put the charges in the spreadsheet, changed the 8% to their unauthorised borroeing rate and put the total amount in my prelim, is that right?

 

Also, what are their defences likely to be regarding claiming CI as it makes my claim 8k!! I am scared they will make it go to court and I will be liable for costs then!!

 

Hi un1boy,

 

That's not really the correct way to calculate CI. Changing the amount in the spreadsheet from 8% to a different rate calculates simple interest - this is how the s69 statutory interest is calculated. The interest that is in our contracts with the banks is compounded daily.

 

There are people on here who say you can calculate contractual itnerest in this way as the banks and courts are hardly going to argue if you are claiming for less money. But my problem with this viewpoint comes when you potentially have to tell the court how you arrived at the figure, and in my opinion calculating simple interest at a higher rate is a made up form of interest and I think the court would potentially see it that way and not award it - it certainly doesn't exist in your contract. Of course it may not get that far and a lot of people find that compounding the interest creates a very high amount, especially when their claims go back a few years. But it's certainly something to think about.

 

Good luck. Lucid

[un1boy]

Hi un1boy,

 

That's not really the correct way to calculate CI. Changing the amount in the spreadsheet from 8% to a different rate calculates simple interest - this is how the s69 statutory interest is calculated. The interest that is in our contracts with the banks is compounded daily.

 

There are people on here who say you can calculate contractual itnerest in this way as the banks and courts are hardly going to argue if you are claiming for less money. But my problem with this viewpoint comes when you potentially have to tell the court how you arrived at the figure, and in my opinion calculating simple interest at a higher rate is a made up form of interest and I think the court would potentially see it that way and not award it - it certainly doesn't exist in your contract. Of course it may not get that far and a lot of people find that compounding the interest creates a very high amount, especially when their claims go back a few years. But it's certainly something to think about.

 

Good luck. Lucid

 

thanks Lucid...

[TANZARELLI]

un1boy,

 

have sent the sheet to you.

 

Tanz

[un1boy]

cheers tanz

[allocator]

just spent whole day reading all the threads, head now spinning, in the process of sending off claim for charges, but now dont know what to do about interest, even considering using a company so they can do the calculations, what is the simplest way of calculating the contractual interest and is it a good idea to claim it anyway? help needed please