Filing N1 and a little stuck!!

[tasadin]

I am persuing two accounts with LTSB, both of which are now closed. The first account was closed with an OD balance which transfered to the new account initially. The final account was closed in May 05.

 

I am claiming the following and want to ensure I have got it right.

 

Bank Charges totalling £527.50

Plus interest on those charges at an arbitary 16% OD interest rate which comes to £393.99 until the account was closed.

 

and this is next bit is where I am a little hazy... at this point the account was closed and passed to debt collection. As this is money I haven't got which the bank took do I

 

a) continue claiming 16% interest from date of closure until filing N1 under the principle of mutuality and reciprocity

 

or

 

b) claim 8% under section 69 from date of closure until filing N1. (Or have I misunderstood that I can only claim 8% from date of filing until court)

 

It will vastly affect my value section when filing the N1 and I really want to get this right and definately dont want anything being thrown back by the bank or the court.

 

I thought about MCOL but there just isnt enough room for things I need to say!

[Glenn UK]

FWIW

 

I would claim excess overdraft interest from the date of each charge until you issue the N1.

 

Then at a specific rate per day until the claim is settled.

 

If you are claiming contractual interest because it compounds, you cannot specify an amount per day as you can with Sec69 interest. You have to sepcify the daily rate at which it compounds.

 

On a personal note i cannot see a reason for picking an arbritrary rate?

 

If you want to claim contractual interest then select a rate from the current terms and conditions and have some logic why you select the rate. If/when you get to court you may have to explain why you picked a specific rate.

 

Seems to me logically the correct rate to apply is the rate for exceeding an overdraft if there is one. Not only is it typically the highest value but logically it suits your claim.

 

Finally if you select a rate when/if you get to court the judge can only reduce your claim, not increase it. If you start out at the highest rate theres more scope for the court to set a level they think fair.

 

JMHO

 

GLenn

[tasadin]

Thanks for your thoughts, you always seem to throw up lots of questions glenn .

 

I have asked if anyone knows LTSB overdraft excess interest rate but had no replies I tried finding it out myself on the web but with no joy.

 

I am a little hazy on the contractual interest and compounding, I did use vamps cracking spreadsheet to work out the figures But are we defining contractual as being compounded interest. This area is still very difficult to understand... and I may not have explained myself properly.

 

I know to claim the charges, I know I want the interest on the charges until the point the account was closed at whatever that rate is which I am still trying to find out. I then beleive that that total figure from account closure to date should be subject to an interest rate because the bank has my money and I don't (is this the contractual bit?).

 

I just want to be really sure I have my ducks in a row here and I think I may have read too many threads on here as I am getting more confused.:?

[Glenn UK]

Tasadin

 

Its easy 1st to find the rate on their website they will have the rates but if its not easy to find go to LTSB and ask for a set of T&Cs and charges.

 

If they ask why tell them your thinking about opening an account and want to compare banks.

 

RE interest, it does sound like youre a little confused.

 

With your charges if you were in your overdraft or exceeded the authorised limit, you paid interest.

 

On your statements each month there would have been a small amount of interest debited to your account, enter this and the balance of your account and Vamps sheets estimates the interest due to the charges.

 

Now, if you use MINDZAIs spreadsheet (can be found in his signature) enter all the values and on the front sheet enter the excess overdraft rate.

 

Then go look at the relevant sheet and hey prestothe amount of interest due as of todays date will be set out for you.

 

Compound/contractual interest is confusing since the terms are used often incorrectly imho.

 

Contractual interest the rate and method used by the parties to calculate interest paid.

 

Compound interest refers to the method of calculating the interest owed and is based on the premise of taking the original stake then adding interest to create a new stake. The interest is then applied again and so on for the required period at the required intervals.

 

Hope that helps

 

Glenn

 

HTH

 

Glenn

[tasadin]

That clears things up a little I hadnt thought about the T&C so thanks for that, I was a little slow there.

 

I don't have full statements, I have half statements from lloyds and half a list of charges but these do include the interest and the date on which it was charged. So in order to calculate interest I have used vamps sheets for if you don't have statements, and entered each charge on the date it occured at the 16% interest which I will change to the appropriate rate once I get hold of T&C info.

 

Edit... Just checked LTSB T&C and their standard OD interest rate is 16.5% and their unauthorised is 29.8%. To that end do I calculate the interest on the charges at the higher rate for the whole period of the account as the charges were only applied when we went over the O/D limit or do I charge them the higher rate just for the period that it took us over the O/D and then revert to the 16.5% for times when those charges remained in the account but we werent over the O/D limit... seems that this could get really intricate and complicated. I am leaning towards the higher rate because that would have been applied immediately the charge was added, but i do not have enough knowledge to know if this higher rate is continually added to a charge even once you come back within the O/D limit. My brain is gonna explode

 

I appreciate your time and help Glenn ... once I have the N1 done would it be ok to mail it to you for the once over just to make sure I got it right??

[Glenn UK]

Tasadin

 

Lets get something straight here, the bank has unlawfully taken your money. You charge them unauthorised o/d rate for the whole period since they took it till the date they settle.

 

On the basis that the court can only reduce your claim and not increase it its my view that you should claim the highest rate you can on the basis that there is more room for the court to manouvre should they feel the need.

 

When calculating the interest paid i have to say thats a lot more complex, I would use the spreadsheet that Vampiress prepared to calculate this and leave it at that.

 

Incidentally the spreadsheet only presumes you pay interest if your account is in overdraft when the charge is applied. To correct this enter a value of -0.01 and it will work out a value.

 

dont forget the interest is only an estimate and should be declared as such.

 

HTH

 

Glenn

 

PS you can mail it to me use the pm or if that doesnt work drop me a pm and ill give you my mail address

[tasadin]

Your a star cheers m8, gonna re do it tomorrow and then I'll mail it thanks!!!

[jwhiskers_]

I have asked if anyone knows LTSB overdraft excess interest rate but had no replies I tried finding it out myself on the web but with no joy.

 

29.8%!

[tasadin]

Ta found it to under the T&Cs