Interest Calculation

[LEECHTHEBREACH]

I think Glenn uk you are a little wrong here.You are quite within your rights to apply contractual interest rates .It is based on an implied term in the bank contract which is based on "mutuality and reciprocity" ie what is sauce for the goose is sauce for the gander, ie if they are charging you 0.79 (say) per % per month,then that is what you are going to charge them. This by the way is NOT compound interest.Contractual interest is if in Oct 2000 you had a penalty for £25 then to this day it would be 0.79% x72 months=£13.82.The Compound interest clicks in because as from Oct 2000 every month that small part of the contractual interest kicks in it is raising you overdraft level and turning it or Compounding it.So there are two types of interests that are applying at the same time.This really does push the interest up a massive amount .I am about to try this against Barclays but i will have to send another LBA.This a major issue and needs to be addressed properly.

 

If you think this helps click the scales!!

[LEECHTHEBREACH]

You would loose a load asi have previouly said.You should look at your statement

and see how much they are charging you a month,this may vary .If it is say (as mine is)

0.79% per month then £35 x 0.79% x 12 months would be £3.32,put this in a seperate column and add the total.I did my own spread sheet viz;

04/12/00 charge for item returned unpaid £25 interest 0.79% pm x70=£13.82

21/12/00 charge for unauthorised overdraft £20 " " pmx69=£9.66

etc

etc to the present day Total charges here Total interest here

 

Grand Total: add charges + interest=figure here

 

Flopin easy but takes ages(buy a calculator!),its your money remember

 

If it helps click the scales

[LEECHTHEBREACH]

332 X 8% =26.56 x5=132.80

[LEECHTHEBREACH]

Seminole you are so mixed up i cannot believe you.The 8% you are putting on for the court is only when you have worked out your total claim with the charges (contractual or otherwise)with the interest shown,for your pre letter or LBA

Otherwise you would,nt need the flopin spreadsheets!!!

[LEECHTHEBREACH]

Vickie,goto Dedicated free file hosting upload storage space - CompoundSheet_v1.5.xls

and download the spread sheets.This works very well with Excel or Open Office.org.

I incidently was not able to download Vampiress,s,weird.

Like everything like this it looks complicated,but it is not.Read the instructions and print them off,goto preview print first otherwise you will be printing 20 pages!! Put in the % your bank are charging you a month,(at the start of your particulars,before the spread sheet starts)this will be at the bottom of your bank statements at the end of each month with your charges.If this varies over a period of time you will have to take the average % because you cannot change it halfway through,otherwise you will have to

list the charges at a ? %,carry them on to the present day, print them off,and start again every time your % changes and this will take a long time,(an almost impossible task to do unless you can cut and paste them back in when you start again,but you can,t)Over say a 6 year period this is likely to take you 4-6 hours to complete.Do not forget to print off the compounded interest sheet as well,(this is very important) because this is what you need (both sheets),to send with your particulars of claim.If you have sent off your pre lim letter or LBA,do not fret as you will just have to send an amended LBA.At the court stage do not add on 8% because you have already used the Compound Interest to cover that.Do not do your self out of this interest,it is your money.If it is contested you just argue "mutuality and reciprocity",

Put below in your letters and county court claim.

I calculate that you have applied £xxx.xx in levies and further, I also claim interest at a rate of ?% as set out in the attached list of charges. I believe this rate to be justified under the principle of "mutuality and reciprocity", and is based on your monthly overdraft interest rate that is applied under the terms of the above mentioned account.

Your monthly interest rate started in Oct 2000 as (my figures Barclays) 2.2% unauthorised,1.45% authorised,dropping gradually over the following 4 years to 2.05% unauthorised and 0.79% authorised,so i am taking 1.25% as an average (this for the compounded part). Therefore the total amount owed as of today’s date is £xxx.xx.

There are sheets available on this site for credit cards etc.

 

This should cover every thing to do with this operation,(i know interest is confusing to begin with) so will a site helper post this reply at the top of the interest thread and keep it there,so that it helps everyone !!!

 

 

If you think this helps,click the scales !!!!!!!!!!!

[LEECHTHEBREACH]

Glenn, Fortes fortuna juvat,

it is easy to just add 8%,but you are giving so much away.

(1) The interest is on all my bank state ments (Barclays) but not on the copy bank statements,fortunately i had most of mine back to 2000.

(2) The banks did not intend to impose,they did impose,(ex post facto)thats where "mutuality and reciprocity" kicks in,and they cannot argue against that,it is a fact,(quad erat demonstrandum)

(3) If it gets to court you just add as you rightly say,"in alternative 'sub judice as to the ruleing of these charges unfair' i resort to section 65 of the 1984 County Court Act of 8%"

(4) Start heavy,settle lightly

Justitia Omnibus