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

[bill-k]

Superam. What can I say? Good point !! I daresay there are some in the "Litigation Concluded" thread, but it does merit a dedicated thread, doesn't it ?

[bill-k]

Oh - and JonCris - thanks for your comment. I tried to get my points across gently at first, as I don't want to get on the wrong side of the clerks. I'm not confident enough yet to tell them what's what !! They probably think, like doctor's receptionists, that their job is to try and stop people from getting any further.

[superam]

Bill, i should imagine since the contractual interest issue came up, there will be alot of claims coming to there conclusion and we might see an influx of successful claims, there by giving everyone the confidence to go for the jugular, not that they should'nt anyway, that right Glenn?

[bill-k]

Superam, I sense you may be someone who has close connections with the Courts system. If that be the case, then nothing personal about my previous ranting !! I felt better afterwards.

[megatronman]

Hello. i wonder if someone can answer this question.

I didn't include the contractual interest on my prelimary letter to HSBC. The claim amount was for £768. With contractual interest at 15.9% pa the amount goes up to £1244.

 

So do I just send another prlim letter with the interest added and make the date of that the new claim date?

[Michael Browne]

I'd start again with a new prelim. then LBA. Yes it will add another 14 days,but contractual claim should be mentioned from the beginning.

[megatronman]

Great. Thanks for clearing that up.

[Bigmac versus]

Im going to resend Prelim, and then LBA due to changing from s.69 to contractual interest, however it is with the C.B who charge 29.25% unauthorised borrowing rate, would i be within my rights for claiming this rate rather than authorised borrowing as they have charged me that rate before and if so im unsure of my final sum due to other peoples calculations, not very good at numbers but my charges total £2800 over five years and with the interest(29.25%) it now totals £4600. Does this look around what it could be using this contractual compound interest method anyone? just worried i get it wrong and send second prelim to them incorrect.

[tim2718281]

Hello. i wonder if someone can answer this question.

I didn't include the contractual interest on my prelimary letter to HSBC. The claim amount was for £768. With contractual interest at 15.9% pa the amount goes up to £1244.

 

So do I just send another prlim letter with the interest added and make the date of that the new claim date?

 

I wouldn't; I'd just include the contractual interest in your LBA and court claim.

 

Tim

[tim2718281]

however it is with the C.B who charge 29.25% unauthorised borrowing rate, would i be within my rights for claiming this rate .

 

You're within your rights to claim whatever you like, as long as you can make a reasoned argument for it.

 

If the bank disagree with your figure, they can turn up in court and explain why they think a lower rate of interest should be used. If you agree with their explanation, you can accept their lower figure. Otherwise, you can leave it to the judge to decide.

 

Bear in mind that, if you are entitled to repayment of the bank's drawings from your account, you are also entitled to compensation for the loss of the use of the money. It is quite hard to put a money figure on that loss - suppose for example it meant you missed the opportunity to take a prospective partner out to dinner ... how much money would compensate for that?

 

Claiming interest is one way of putting a figure on the value of the compensation required ... you could have borrowed money to replace that taken by the bank, and you are claiming interest at the rate you'd have had to pay. And to avoid argument about interest rates, you are using the bank's own interest rate ... what they would have charged you had you borrowed the money from them.

 

Tim

[bill-k]

Must say - eloquently put, Tim. I just lurve your arguments.

 

In reply to your "prospective partner" illustration - do you think they might then offer a no-holds-barred week in Amsterdam, followed by Bangkok ?

[catherinebear]

Hi there

 

I am in the process of claiming back the late payment charges and the over the limit charges which came about by the charges they imposed on the account. With regard to purchase interest each month is this claimable or is this just a downside of having a credit card, as on a limit of £1,000 we were paying about £25.00 each month in purchase interest even though we were not purchasing goods through the card! Sorry to sound so thick but I find it quite confusing.

 

Many thanks

Catherine and Dave

[bram stoker]

The interest that relates to the charges is claimable. Please see my Chambers. I am currently updating it with some notes.

[redsue]

V interesting thread - I keep coming back for more! (I think I'm slightly addicted)

Sorry guys I've looked everywhere for some advice reagrding this but I can't find it

I'm about to complete my MCOL (or N1 form) not sure which one to use as I'm claiming compounded contractual interest (24.9%) from Nationwide on my charges.

I've made them aware of this from my LBA - I just included a paragraph "since my previous letter I now understand that the principle of mutuality, or reciprocity, applies to the aforementioned contract and will be claiming back compounded contractual interest on these charges"

I'm not sure of the exact particulars to put in as I won't be claiming s.69 to contractual interest now and I know that you are tight for space on the MCOL.

Any ideas - your help is always v much appreciated?

[Glenn UK]

Dear All

 

Bill-K wont be coming out to play today, apparently he is having some minor problems accessing some threads this being one of them.

 

I'm not sure if this is good or bad, bearing in mind he cant see what Ive posted on his behalf I guess its OK to say its good!!!

 

HTH

 

Glenn

[bill-k]

Dear All

 

Bill-K wont be coming out to play today, apparently he is having some minor problems accessing some threads this being one of them.

 

I'm not sure if this is good or bad, bearing in mind he cant see what Ive posted on his behalf I guess its OK to say its good!!!

 

HTH

 

Glenn

 

Thanks, Glenn, you're very kind !!

- at least Andrew1 thought it was bad news, anyway !!

 

FWIW - my problem it seems was caused by me fiddling with my own Control Panel. Mum always told me I'd go blind if I did that. I changed the method of thread view from the default (earliest post first) to latest post first. It seems if you do this, then long threads won't open at all, so I went partially blind !!

 

Having fixed that - there IS some good news. You can all go back into the water now, as I'm off away for a week.

 

Enjoy the break, but remember I'll be checking what you said when I get back !!

 

Cheers all,

 

Bill.

[giveITallback]

Hi there I’m also trying to get me head around all this malarkey before I make the first written contact. I might be posting in the wrong area but I do want to ask about this interest debate. This is my situation:

My current bank RBOS has charged me every month for Direct Debits that take me overdrawn (I don’t have an overdraft). This has had a spiral affect that means at the end of each month I keep going overdrawn because they eat up my disposable income for the following month in charges. (eg. at the end of August they charge me for the July so in September my wages are already short for my bills, so by the end of the month my wages are depleted before the last of my DD’s have come out, which then take me overdrawn again). They take around £118 a month in charges a £28 one off referal fee and then £30 for each DD they pay. (does it make any difference that they honoured the DD, can I still claim or do they have to have returned the DD unpaid for me to qualify?)

So I understand that I can claim back the main charges. What I’m not clear about is whether I claim back interest they charge me for going overdrawn or is there an interest charged by the bank just related to the charges they applied?

i.e a DD comes out my bank and takes me £100 overdrawn would they charge me interest on the £28 referral fee and £30 DD or just on the £100 i'd gone overdrawn on that day OR are you guys referring to interest on amounts that you are overdrawn caused by the bank charging you to become overdrawn? Aarrgghh

 

Please clarify the above before I go on. Thanks peoples

[lucid]

The banks charge overdraft interest and there is a way of estimating the portion of that interest that only exists because of their charges. The way to estimate this is by using one of the advanced spreadhseets where you ened to enter all of the itnerest you have paid along with you account balance after the interest was taken. You get an estimation as to how much you can claim back and in a lot of cases it's a small amount so people don't think it's worth adding. But it's entirely up to you. If you've paid a lot of interest then it's probably worth the extra work to see how much the total comes to.

 

I suggest you look into getting a second account open which you can move all of your wages and direct debits to. Basically stop using your account that's aquiring a lot of charges. Otherwise you are going to have a neverending problem of your wages getting used for charges and ot being able to afford your bills etc.

 

Lucid

[giveITallback]

Can someone please clarify if you are seeking refunds for interest charged on any of the following:

 

- For the amount of time they have had your money (interest accrued daily)

- Interest charged on the charges that took you overdrawn and accrued bank interest at a higher rate

- general overdrawn interest not related to bank charges

- Any other interest charges

[lucid]

The interest that you can seek to claim back is:

 

- For the amount of time they have had your money (interest accrued daily)

- Interest charged on the charges that took you overdrawn and accrued bank interest at a higher rate (see my above post for details on calculating this)

 

Statutory interest is added to your claim when you file it at court and it's an interest rate of 8%.

 

Alternatively, referring to the title of this thread, you can claim contractual interest instead of statutory interest. Contractual interest is a way of claiming interest in the way it's set out in the contract and in the case of bank accounts this is compounded interest at the unauthorised borrowing rate.

 

Lucid

[giveITallback]

I understand that but can you clarify what the interest is from? Cheers

[lucid]

Sorry I must be being really thick. I don't know if I've misundertood your original question but I don't understand what you mean by can you clarify what the interest is from? Can you clarify for me in the hope that I might be able to help?

 

Lucid

[giveITallback]

basically can I ask the bank to give me back the charges they took, the interest from these charges whilst i was overdrawn and what else?

[lucid]

Hi.

 

Yes you can claim back all of the charges that the bank have taken. You can claim back some of the interest the bank have charged you - but only the amount that has occurred because of their charges - use the advanced spreadhseets to help you estimate this. Then you can add interest to your claim. Either the statutory interest which is 8% which you add to your entire claim once you file it at court and not before. Or you can consider contractual interest which can be added from the start but I suggest you thoroughly research the concept before considering it.

 

Hope that helps. Lucid

[giveITallback]

ok great, finally does it matter that they always paid my direct debits? They did not reject them however, they paid them and charged me £30 for each plus a monthly £28 fee.....bar stewards!! I also think they very craftily waited for my wages to go in before taking the charges so will have to check whether any resulted in going overdrawn and incurring interest at the "contractual" rate.

 

Does anyone know anything about business accounts?