Ltsb, Lba & Schedule Of Charges.

[consort]

Can someone CONFIRM the following charges can or can't be claimed for,

Overdraft Interest, Overdraft Excess, Unpaid DD, Unpaid SO, Unpaid Cheque, Anything else?

 

Gary.:?

[Michael Browne]

you can claim for anything which is deemed a penalty charge, which includes:

 

returned direct debits,

card mis-use,

unpaid standing order,

unpaid item,

exceeding your overdraft,

overdraft interest (see below),

 

you can not claim for:

 

ATM (cash machine) usage (typically £1),

an agreed overdraft fee,

anything which is deemed a "service" by the bank

 

Overdraft interest

 

This is the single most confusing part of most peoples claim, and one of the most frequently asked questions

 

overdraft interest is applied to your whole overdraft, however if some of your overdraft is made up from (unlawfull) charges,

then a proportion of the interest has been wrongly applied and is therefore reclaimable

 

Example

 

you have a £400 overdraft, you purchase something that day for £200 so now you are -£200 on your current account balance, but on the same day £200 of charges are placed on your account, which means that your current account balance is now -£400 and the bank will charge interest on the whole £400, but as we are contesting that these charges are unlawfull, then the interest should not be placed on the whole amount, only on the amount that you have actually spent,

therefore in this example you can claim back 50% of the interest, however these calculations have to be done daily to truly reflect the amount which can be reclaimed,

 

Dont worry, Vampiress has made a spreadsheet (the advanced one)that will calculate this for you, you can find it here, but please read the instructions that come with it;

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/182-interest-calculation-spreadsheets.html

[consort]

Thankyou Michael for that clarification, The Interest on the interest thats when it gets complicated maths, is it worth at the LBA letter stage worrying about? I have just typed a spread sheet with O/D Excess + Unpaid Charges only. This will be sent 1st thing tomorrow.

[consort]

Also on the LBA should I really threaten them with the OFT and if I do is there a template letter for this?

[Michael Browne]

Also on the LBA should I really threaten them with the OFT and if I do is there a template letter for this?

 

I wouldn't bother OFT 05/04/06 directive is about credit card charges being reduced to £12, which most of them have done. There's no template letter.