Interest rates

[nordic]

Claiming back charges on two MBNA cards. Is the rate still 8% or can I charge more (bearing in mind that credit card rates are higher)? Can anyone advise the best way of calculating the interest. I had filled out a spreadsheet with the charge, number of days since charge and the 8% rate calculated. Don't want to miss out on screwing every penny out of them. Funny how when I was late with payments they've phoned me in Athens, Budapest, Milan and Antalya despite me telling them I'm away and on a mobile but now I'm asking for money off them - not a peep!

[surreyscouse]

let them work it out for you. I thought the interest would be no more than a tenner but it was a lot more than that. Let them do it as they know how it is worked out and they will show you trheir calculations if you ask

[nordic]

Well to be honest if they contact me then they can!! I was just wondering if you base it on the interest rate they charge on the card? I suppose as you're SurreyScouse I should rename myself SurreyManc.

[surreyscouse]

right then surreymanc ! I fee like an adopted manc when i go to see oasis in concert !

 

Anyway, You can't really use the rate that mbna do as you will come out with a completely different figure than them. They will obviously add interest month on month from when the charge was added but it won't tally up with what you have.

 

By all means give it a go and possibly argue the point if their figure is less than yours, all i am saying is that i tried that and my figure was a lot less then theirs

[roydosan]

The 8% is what you add on when you make a court claim - don't get it mixed up with the interest charged on your fines!!!

[mark.wall]

The interest rate is the rate you were charged on the account - that is if they charge you 1.5% per month (18%pa) then that is what you claim. So a charge of £20 put on your account 100 days ago would be £20 x 0.0493% (daily rate) x 100 days. You need to do this for each charge - excel spread sheet will work it for you quickly.

 

The 8% comes later if it goes to court and you get a judgement.

[surreyscouse]

Mark, i see how your calculation works which is fine, but the only thing i would say is that your calculation adds the charge at 0.0493% based on £20 from the date of the charge. However, after month one (when they recalculate the interest again) you would lose out ever so slightly on the interest. I mean based on £20 we are literally talking a couple of pence but over time and with some charges being in the thousands we are talking a fair few quid.

 

Although well done for passing on the formula anyway, no way could i have come up with that !

[mark.wall]

I wrote a spread sheet designed to calculated all this automaticly. It is reasonabley user friendly if you understand the basics of spread sheets. It works by calculating the number of days from the dtae of the charge to the current date. Then it applies the interest rate which you get from your statements (because they change from time to time) and manually insert them. It does not charge interest on interest but I was happy with the result I got and not prepared to go deeper into the calculation. PM your email address and I will send a copy to you.

[nordic]

Unfortunately I haven't got my statements - they sent me a list of charges instead so I've got no way of referrng to them. Plus the fact that amazingly they have become silent - there is no way I'm ringing them with their ability to twist everything round. I rang them months ago to take out a loan - had too as I had two cards of theirs and no-one else would give me a loan. They gave me a loan then changed the interest rate to suit them from what they told me on the phone when they initially agreed it as they knew I was desperate. They then reduced the credit limit on both cards to £500, even though I told them to close one (I only wanted one card with a reasonable credit limit). When I rang to complain they told me that they followed my instructions to the letter and that the transcript of the conversation was on the computer in front of them. Absolute B@**o%ks!!

[nordic]

Roydosan - you've lost me? Charge them interest on the charges plus 8% on top of that? Surely I claim back the charges but instead of claiming back at 8%pa (as I did with the Halifax) I claim back at approx 1.8% per month (21.6% pa)? HELP!!

 

Well, despite me emailing Gareth Tunnicliffe giving them the option of settling this out of court they have 24 hours left before I get onto Moneyclaim.