HSM v Bcard Mastercard

[Still_surviving]

Ive just started 2 x CCA requests with B/Card and think I know what Im gonna receive before I even get the reply... :grin:

 

I am also beginning charge reclaims against them, and have a question -

 

Considering, these cards have never been paid off during the last six years (I know, I know, but a customer failing to pay some years ago put pay to that), their nice monthly compound interest has been stacking up on my £1135 of various charges.

 

I understand the reasoning for having to use the simple interest calculator, but do ccard companies ever pay out on the claim plus compound interest? After all - thats what the balance on my cards has been inflated by....

 

Anyway, would appreciate any response and needless to say will keep thread updated

Edited October 2, 2009 by Still_surviving

[brindles]

Hi still,

 

Yes they do..but they dont like it and will argue till the end.

 

You can claim the charge+compound interest and also another 8% Section 69 statutory interest once you file at court.

 

The section 69 statutory interest can be claimed at 8% simple but you can also claim statutory interest at the rate stated in the contract.

 

So lets say your credit card interest is 26.80%

 

You claim the charge+26.80% compound interest+section 69 interest at the rate in the contract 26.80% instead of 8%.

 

You would be claiming interest in restitution, they have levied an unlawful charge and on that charge they charged interest...but they have presumably made money on the money they have taken by lending it to someone else and again charging interest..so on and so on..

 

I have provided links to some threads that can explain better than I can. Look out for the name Noomill as he is excellent on the subject of interest.

 

here are the links.

 

http://www.consumeractiongroup.co.uk/forum/barclaycard/138906-mackerel-barclaycard.html

 

http://www.consumeractiongroup.co.uk/forum/barclaycard/92123-alphageek-barclaycard.html

 

and the noomill one

 

http://www.consumeractiongroup.co.uk/forum/dca-legal-successes/168312-morgan-stanley-cca-received.html

 

the above threads should help clarify the interest questions.

 

Hope this helps, good luck,

 

brindles.

[slick132]

Hi Still Surviving and welcome to CAG.

 

Brindles reply kinda throws you in at the deep end but is most helpful.

 

Take time to read the threads linked above - you'll learn loads.

 

Read the Reclaiming Guide at Link No1 in my signature below, which will explain a lot of the abbreviations used and the processes you will have to go through.

 

If you have all the a/c statements, you can get on with making up your SOC using an advanced spreadsheet.

 

If you DON'T have all the statements, send off an SAR with the £10 fee to the BC Northants address on your statement. http://www.consumerforums.com/resources/templates-library/48-bank-templates/110--data-protection-act-1998-subject-access-request-

 

Finally, have a look at the Interest Tutorial linked in my sig're, which tells you more about claiming back higher levels of interest.

[Still_surviving]

Wow thanks guys for the swift and helpful response - you certainly get a sense of community very quickly when you get involved here...

 

Anyway - using the calculator here http://www.shweb.pwp.blueyonder.co.uk/interestcalcs.xls

 

Ive ended up with approximately £2150 in charges and interest to reclaim back on my 2 Barclaycards excluding the statutory 8%. Im prepared to forego that if necessary, and would use that as a bargaining tool. Everything else - i want it back !

 

Thanks again Im off to do my other three cards now....

[brindles]

Hi still surviving,

 

You are very lucky to have slick 132 on board, He has helped me above and beyond the call of duty with my own claim.

 

Dont be in a rush there is a lot to understand.

 

Good luck,

 

brindles.

[Still_surviving]

Rest assured I wont be rushing to submit claims without all attention to detail...

 

....and for that reason, can I ask if theres any way for a wiser CAGer than I, to look over this first spreadsheet Ive prepared and see if it looks okay?

 

The reason I ask is that the compound interest @ 18.9% has led to £492 of interest being added to £520 of charges (some go back to 2004).

 

I hope no one thinks this is a cheek...I will only ask the one time I promise

[slick132]

Hi SS,

 

No surprises that the interest is relatively high because it refers back to the date of the charge, so older charges will result in high interest figures.

 

Can I ask why you use the figure of 18.9% when you could claim a higher figure (say 28.9%) if you claim interest in restitution.

 

Have you read the Interest Tutorial yet.

[Still_surviving]

Yes I have read the tutorial slick - when I noted all the charges down I also noted the interest rate being charged by B/Card at the time.

 

The range of APRs went from 17.9 at the start in Mar2004, rising to 18.9 Dec2004, 19.9 Dec2005 up to the oh-so generous 24.9 from April2008 onwards (silly me - there was I thinking global interest rates were at an all time low)

 

I picked a figure at the lower-end so as to give them less room to wriggle - is that not how it works?

[slick132]

If you're up for a fight re the charges and interest (it's claiming anything more than 8% s.69 interest that BC will refuse to pay), why not seek interest in restitution at their contractual rates.

 

You'll have to take them to court for 18.9% anyway, so why not make it worth your while and go for a higher sum.

[brindles]

Hi still surviving,

 

Barclay's Bank PLC charges a “Cash Rate” of 26.8% pa compound for cash advances.(well thats what they charge me)

 

I think this is the amount you should be claiming. Then s.69 interest at the same rate.

 

You as I did may feel this is to much but remember these are unlawful charges and therefore so is the interest applied.

 

You have in effect given them a cash advance and you want it back. The same principle they hold you too, there is nothing wrong or awkward about that.

 

My claim is for the return of £740 of charges but with all the interest it amount to over £4000. They have already refunded over £2000, You need to reassure yourself this is the correct amount of refund, it just shows how much money they have made from there unlawful charges and no one including Barclay's is allowed to profit from an unlawful activity.

 

As I have said my claim for the return of 740 of charges amount to over 4000 then your claim of 520 cannot be much less than mine.

 

If you go in at a lower rate they will assume you are not fully aware and will try to confuse and intimidate(they will do that anyway) but at the higher rate they will know you are aware of the law relating to this type of claim.

 

You have a way to go yet but my hearing date is scheduled for the 12th of this month and although I was claiming s.69 interest at 8% I am know hitting them for the full whack, so you only have to wait until Wednesday week to see the higher rate in action, for the want of better words.

 

After all said and done if you give them a call and say "look I have had some money out of you any chance of letting me off some" I guess they will say "err no"!...so you don't pay them they will take you to court for the full amount...Then the same in reverse.

 

The contract states a certain rate so there is no need to confuse things and stray outside of this.

[angel_1]

hiya all

 

thank you all for this informative thread and ive learnt a bit more about all this interest plus, in theory it could actually clear my debt once they supply a valid cca, which im still waiting on lol

 

but hey i love it that ive finally understood the concept of the compound interest, PLUS the 8% wow that sure now makes a huge difference:D:D

 

so am subbing to your thread if i may Still-surviving and thanks to brindles and slick for their huge help yet again

 

cheers have a fun eve all laters angel x:)

[brindles]

Hi angel,

 

You say

 

but hey i love it that ive finally understood the concept of the compound interest, PLUS the 8% wow that sure now makes a huge difference:grin::grin:

 

The point is not plus the 8% but plus s.69 at the contractual rate 26.80%

 

The way I see it if a window cleaner breaks my window and I have to take him to court to claim the cost of repair I would also claim s.69 at 8% as there is no contract.

 

But with barclays there is a contract of 26.80% so I can claim s.69 interest at that rate.

[angel_1]

hiya brindles

 

thanks - perhaps i was seeing too many Pound signs,,,LOL

 

oops

 

back to reality so the contract rate of what barclaycard was charging of course would be for me so much higher than 8% so best to go by the barclaycard contractual rate

 

sorry ive reread your post and now understand you were initially claiming the 8% but now going to wack them with the contractual rate ie the 26.8% - and thus its is Only the 26.8% you are claiming for which is of course much much much higher and lots more pounds in your pocket. fab!

 

i hope ive got it straight now - hope my silly mistake helps others too

 

laters angel x

[brindles]

Hi angel,

 

I too was confused for the past year but only this weekend after exchanging a few emails with another gagger know as Noomill has the penny drooped for me.

 

Obviously you need to use

 

http://www.shweb.pwp.blueyonder.co.uk/interestcalcs.xls

 

but for arguments sake lets say a 20 late fee in 2004 plus interest at 26.80% come to a total of 100 to work out s.69 interest at 26.80% you simply remove the charge of 20 from the above total of 100 which gives you your s.69 interest of 80 pounds.

In effect you are just doubling the interest fiqure..simple.

 

I think all in all we are not demanding s.69 at the contractual rate we are asking the court to award s.69 interest at the contractual rate by claiming interest in restitution. In the POC we should include a paragraph stating "in the alternative the claimant claims s.69 interest at 8%" just in case the judge is reluctant to award at the contractual rate. BUT WE SHOULD ASK.

 

It seems Barclay's have and do pay out at the higher rate and before the court date...but they will not give in easily and its just a matter of holding your nerve.

[Still_surviving]

Okay, I do understand the concept of compound interest on top of the debt, but I am a little unclear as to how we are justified reclaiming 26.8%

 

I can see that may be the going rate now, but over the timescale of my claim the rates have been considerably lower. If its a case of you claim what the rate is now, and not necessarily what you might have been charged, then im obviously cool with that.

[noomill060]

Okay, I do understand the concept of compound interest on top of the debt, but I am a little unclear as to how we are justified reclaiming 26.8%

 

I can see that may be the going rate now, but over the timescale of my claim the rates have been considerably lower. If its a case of you claim what the rate is now, and not necessarily what you might have been charged, then im obviously cool with that.

 

If you are making a claim concerning a contract where an interest rate is specified within that contracy (eg: a credit card charges claim), you may claim s.69 interest at the rate specified in the contract (eg: 26.8% compound)

 

 

If claiming concerning a contract where NO interest rate is specified (eg: claiming against Tesco for a non-operative toaster) you can clam 8% as the rate for s.69 interest.

[brindles]

Thank you Noomill, as you have not pulled apart or corrected my comments above I will take them as being correct.

 

Still surviving,

Yes I believe you claim at the going rate wich is once again 26.80% on the charges and also s.69 at 26.80%....

[noomill060]

Hi Brindles

[brindles]

Hi noomill

[brindles]

Hi stillsurviving,

 

Just to inform you I have now reached a satisfactory conclusion with BC but, for reasons of confidentiality, I cant talk about it.

 

I can however refer you to my posts above and the fiqures quoted.

 

Here is a link to my thread.

 

http://www.consumeractiongroup.co.uk/forum/barclaycard/163825-morgan-stanley-barclaycard.html

 

Hope this helps.

Edited October 6, 2009 by slick132
confidentiality

[Still_surviving]

Brindles

 

My congratulations to you - i shall obviously have to follow in your footsteps

 

If its not caught by your confidentiality clause, can I ask if any 'reprisals' taken against your card such as lowering limit, or closing?

[brindles]

I need to seek advice before I can answer, sorry.

[slick132]

Brindles won't mind me confirming that there were no reprisals of the type you suggest.

 

However, if he agreed to confidentiality, he's unable to confirm the terms of any settlement reached.

 

[Still_surviving]

Well Im actually a bit insulted....

 

Received a prompt response from Barclaycard regarding one of my 2 cards, and all they have sent is a completely blank application form, and some Terms & Conditions of Use. Have no idea if they are current as not dated...

 

I even bought myself a little scanner ready to post stuff here and get opinions.....but they must think im a fool if they think a totally blank application form satisfies my request - it doesnt even say Credit Agreement anywhere.

 

Am I now right in putting the account into dispute and stopping payments until this is resolved, or is there a correct period to allow them to comply? As they have responded promptly, the 12+2 is not actually over until the 14th.

 

Also by doing this, would this give them any reason not to deal with a charges reclaim?

Edited October 7, 2009 by Still_surviving

[Still_surviving]

Decided I best not be too cocky, seeing as this is my first experience with these sort of things, so am linking to 3 scans I took of the correspondence...

 

 

http://i816.photobucket.com/albums/zz90/Still_surviving/Bcard1051009.jpg

http://i816.photobucket.com/albums/zz90/Still_surviving/BCardCCA051009_0001.jpg

http://i816.photobucket.com/albums/zz90/Still_surviving/BCardTerms051009.jpg

Edited October 7, 2009 by Still_surviving