Why let your bank keep your money? Calculating your charges claim

[ohoh4312]

I have been discussing this issue with BF, and looking at formulas etc to cover this issue.

 

However, it is vitally important to note that we are NOT talking about Contractual and/or Compounded Interest.

 

It is simply about recovering the portion of interest charged that relates to the charges applied.

 

My initial thoughts on this are as follows:

 

Current Overdraft Rate 1,000 (a)

 

Charges applied on (date) total - 60.00 (b)

Interest applied on same date = 5.25 ©

Interest on charges = (©/(a))*(b) = 0.31

 

So then your running total = 60.31 (d)

 

Next set of charges applied = 75.00 (e)

Interest charged = 6.75 (f)

Interest on charges = ((f)/(a))*((d)+(e)) = 0.91

 

Once your running total is equal to or greater than the overdraft figure, in this case 1,000, then you would remove the formula and simply enter the full amount of the interest charge.

 

Gosh, it seemed so simple, but still looks really complicated when you lay it out like that. But on the spreadsheet the formulas would be embedded so that the calculations would be automatic.

 

Please discuss, dissect and dismiss as necessary!

[ohoh4312]

Draft Spreadsheet with info boxes if anyone would like to take a look:

Draft Int Calc2.xls

[ohoh4312]

Actually I don't agree that positive balance interest would have to be repaid - that is part of the agreement with the bank that they pay you interest on + balances, and deduct it on - balances.

 

All we are reclaiming here is the interest deducted on the charges themselves, as 1) the charges are unfair, and 2) they have directly contributed to/exacerbated the - balance.

 

Sorry if I am a bit slow off the mark here and this has already been explained.

[ohoh4312]

The interest paid by the bank is due to you on YOUR money and should not be taken into consideration, IMO. And in most cases the amount people have "gained" is negligible - some people have not been out of their overdraft for years - yours truly being an example - therefore "interest paid" does not exist on my statements!

 

We cannot effectively rewrite the statements as if the charges were never applied, because that would adjust all the balances and in effect if it brought you ought of the red then MORE interest would be due to you.

 

All we want is the portion of interest that directly relates to the corresponding charges, nothing more.

[ohoh4312]

Thanks yb - yes the calculations would be automatic, although it may involve copy & paste of formulas depending on the number of entries for each individual case.

 

I thought about the fact that overdraft limits change over time, but I worked on the principle of using the largest applicable amount. The reason being that it would involve a lot more formulas, and become over-complicated if you kept changing the amounts, especially if the figure decreased at some point from a higher rate.

 

It is very difficult to produce a spreadie like this in a "one size fits all" capacity, but hopefully by using the highest applicable rate it gets near to the mark, but other input/suggestions/advice are warmly welcomed.

[ohoh4312]

Hi all - sorry but I have had internet probs so not been able to get on here since yesterday.

 

Anyway, I have now prepared a working copy of the spreadie, and it would be good if some of you used to input your data, and came back to me with any problems. There is one issue I have identified, but I have yet to come up with a workable solution, so it is still very much a work in progress.

 

Notes:

1. I have prepared 10 pages, but if you need more (!) you can just copy the entire page down and the formulas will reset to the destination cells.

 

2. Make sure when you are doing the early interest charges that you enter the figure into the appropriate cell in Column H, otherwise you will overwrite the formula. Obviously once you have hit the point where the total charges are equal to/greater than the overdraft limit, then you can enter the figure in Column B as normal.

 

3. Your overdraft figure must go into Cell H7 (highlighted) in order for all the formulas to calculate correctly. Don't forget that this is your agreed overdraft limit, NOT how much you are overdrawn by.

 

4. The days elapsed will automatically change once you enter the relevant date - either dd/mm/yy or dd/mm/yyyy will work.

 

5. Overwrite the descriptions in Column A as necessary - once you put in the first couple of letters the description will automatically fill for you.

 

Sorry if I am teaching some of you to suck eggs, as they say, but lots of people are not conversant with spreadsheets, so I have to try and make it as clear and user-friendly as possible.

 

I look forward to your feedback - positive AND negative!

 

xx

Edited June 3, 2009 by ohoh4312
Because I am a doofus!

[ohoh4312]

AA99, and anyone else - please hang fire!

 

I have just removed the spreadie, and am currently altering it.

 

I was struggling with the formulas recalulating when everyone inserts lines, as they will need to, to accommodate the varying amounts of charges each month, and I just couldn't get my head round it.

 

Now I think I have cracked it, so I will repost in a bit.

 

You can all blame it on me being blonde, but my excuse is the streaming cold I am battling with - and no, I haven't kissed any pigs lately.

 

I'll be back.......

[ohoh4312]

Okay, sorted now. A simple solution to something that has bugged me for 3 days.

 

So now the formula exists in every cell in Column B - except the very first, as it is assumed that you had to incur charges to be charged interest on those charges.

 

This means it doesn't matter where your interest charge falls on the spreadie, as long as you use Column H for the actual figure, the calculation will automatically occur. Hopefully that should remove the need for inserting/removing rows, and generally make life easier.

 

I could kick myself for being so dumb, and apologies if you copied the original version.

 

I am not saying it is perfect btw, so I still need feedback please.

Draft Int Calc2.xls

[ohoh4312]

Would you care to elaborate please? I have just read the Act that you refer to, and I cannot see how it is applicable to bank accounts.

 

Also, I see no mention of 8% above base rate, or any actual rate quoted, so I am very curious as to where you got this info.

[ohoh4312]

Okay, yes you can claim the interest charged on the charges that you have already claimed for, and the subsequent charges + interest.

 

SAR requests have a statutory 40 day time limit, so you will not receive the info before the HoL judgement, but it is not set in stone that their judgement will be the end of the matter.

 

I would say that you need to get onto this asap, but do not be put off by the HoL date, as I really don't think any major judgement will be handed down then.

 

Sorry have to go, but I will be back tomorrow x

[ohoh4312]

When you are claiming back charges and interest from a bank I always assumed that whilst the account was in dispute that the bank could not issue proceedings against you but I have just read on another thread that they can? Any views.

 

Did you read that they CAN, or that they have done?

 

The answer is NO, they cannot, but that doesn't stop them trying.

 

In fact I was discussing this issue with BankFodder very recently, and he is vociferous in his opinion of this practice. On the subject of claims that have been stayed by the Court due to the Test Case, BF's view is that by pursuing/continuing enforcement action the banks are undermining the judicial process. I couldn't agree more, and I am taking my bank to task on this basis.

 

The banks seem to think that the waiver works totally in their favour, and gives them carte blanche to turn the screws on their customers every which way they can.

 

WRONG.

 

The waiver - although I do not agree with it in its entirety - does afford protection to us from this very practice, and we need to make sure that the banks are reminded of this at every opportunity.

 

Can you imagine the uproar if a bank started litigation proceedings against you for the recovery of an amount which was already the subject of a Court claim?? The judge would look none too kindly on the fact that his decision on a case, that was dependant on the result of another case, had been usurped by counter-litigation.

 

Thats my view anyway.

[ohoh4312]

hi I did ask this question so time ago but can't find the answer

 

I've claimed my bank charges and received the letter re 'got it but don't go to court as we'll immediately request a stay until ) response

 

Do I need to start the court action in order to rack up the 8% or will I get that as I've sent the formal claim to the Bank with all the supporting info?

 

many thanks in advance for your response

 

Hi Sunshine54

 

Yes, you need to start the Court action asap - the 8% is statutory interest which can ONLY be awarded by the Court.

 

If you need any help with the claim, please post on your thread, or post a link here and you will get plenty of advice and support.

 

HTH x

[ohoh4312]

Interested in your comments 2Grumpy, and I will try to explain.

 

I assume above when you talk about daily balances you mean the actual balance of the account at any given time? This is a sticking point because with microfiche data rather than actual statements, the account balance is not shown; it is simply a list of dated transctions.

 

Therefore we are working on limited data, and trying to make the best from what we have.

 

The 8% column is the statutory interest that you are legally allowed to claim through the Court process, on every amount that you have been charged. It is there to show how much your claim increases by once you submit the N1, and subsequently accumulates daily until judgement.

 

Obviously when you first approach the bank you cannot ask for this, so you can just hide those 2 columns when you print it off.

 

And yes, 0.22% is the accepted value for stat interest.

 

Hope that helps.

 

ohoh x

[ohoh4312]

Apologies - that is what I meant of course.

 

Case of fingers and brain not talking to each other.

 

Sorry x