Restitutionary Damages

[esg]

Hello!

 

This is a question about Compound Interest & Restituionary Damages, I've read up on them but there's a couple of things I'm not sure about.

 

I want to query them using a PPI reclaim on a credit card as an example.

 

This is going to be long-winded but I wanted to explain things in as much detail as possible, as I said I've looked through this forum at length

and through some FSA stuff online as well as other reading material but couldn't find a definite answer on how Compound Interest and Restitutionary Damages

relate to one another or how RD is calculated.

 

Ok, here goes...

 

So I understand that I can claim back my PPI premiums and I can calculate Compound Interest and claim that back as well

(I also understand that if I were to go to court I can then add 8% stat int. on top and then claim that back as well but for now if we just assume I'm not going to court.)

 

I think I'm right in saying that to calculate my claim with compound interest I just work out what my individual premiums were,

find out what the APR I was paying for purchases through my lender and use those figures to calculate my claim.

 

e.g. To keep things simple lets say I make 10 payments to my credit card from 01/01/11 - 01/10/11 (APR of 20%) and the PPI premium is £10,

I have paid £100 I shouldn't have so I'm entitled to that plus the 20% APR so my claim is for £120.

 

This I where I get slightly confused as to Restituionary Damages as I thought that it was, in essence the same as compund interest.

 

But if Restitutionary Damages is essentially claiming back the unjust profit that the lender has made with my money

then can I claim back Compound Interest AND Restitutionary Damges as the money claimed back on the CI is mine anyway,

it is just the premium I paid and the insurance on the premium that I paid.

 

It is completely separate to the profit that the bank has made by lending out the money that I shouldn't have paid but did.

 

I also read that when claiming Compound Interest the start and end dates of the calculation are in line with your first and last premium paid,

 

but with Restitutionary Damages the start date is the date of your first premium and the end date is 'today's date'

as the lender is still making a profit from the money it took off you by continuing to lend it out.

 

So how do I calculate RD and is it in addition to CI???

 

I've established I paid £12 per month wrongfully for 10 months hence a CI claim of £120 but assuming today is 1/4/12 then the bank has had my money for 15 months, so am I claiming 10 months of CI with 5 months of RD on top or am I claiming 10 months of CI plus 15 months of RD??

 

And if RD is reclaiming JUST the profit the lender has made with my money

is that caluclated at the same APR i paid?

e.g The lender used the £12 it took off me in month 1 and lent it out at 20% so the profit on that is £2.40 per month for 15 months which = £36.

 

Then in month 2 it did the same for 14 months which = £33.60.

 

In month 3 it did the for 13 months which = £31.20. etc.

 

So is that then calculated all the way up to the 1/10/11 when I made my last payment and the lender made £2.40 profit on that for 5 months which = £12.

 

So, assuming thats what RD is I would then add up all those figures together to work out what the profit is that the lender made by lending out my £12

to other people at the same APR that I paid (Note that I'm not factoring in the £12 as I'm aware that those premiums are already getting claimed back on the CI side,

I'm just attempting to calculate the profit made by the bank on the premiums I paid).

 

All those figures when added together total £288, so would my claim be £120 for Compound Interest PLUS £288 in Restitutionary Damages?????

 

Also can I only claim back RD if I were to go court?? Or if I went to court could I claim back £120 (CI) + £288 (RD) = £408 * 8% stat int = £440.64???!!!

 

I do realise that I have turned a £120 claim into a £440 one which sounds ridiculous but this is just a hypothetical situation, the above is just the conclusion I have come to regarding the info I have read on CI and RD and I am keen to finds out what the facts on the matter are. I have potential claims but I am keen to get a complete understanding on the matter first, one thing I've learned from this website: Knowledge is Power.

 

Many thanks to anyone who replies, it will be a great help to me and anyone else who reads this post.

 

Regards,

 

ESG

 

 

PS If you have made it all the way to the bottom of this post then give yourself a pat on the back. You've earned it!

 

[rebel11]

Hi esg

 

Welcome to CAG

 

The guys will be happy to advise as soon as they are available.

 

Thread has been moved to the correct forum.

[dx100uk]

you need to becareful and not confuse CC reclaims with loan reclaims.

 

loans are 8%stat on PPI PCM

 

CC you can go for RD but you CANT claim 8% on top even IF you go to court.[you can't have BOTH]

 

p'haps it better not too look too deeply into all these issues.

 

our SOC's are here:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?330996-Latest-Spreadsheets-PPI-Claims-and-Charges-Claims-Dec-2011

 

each comes with its own instructions as well as those in the thread above.

 

unless you INTEND to goto court

 

on CC's its better to use the FOSCIrunning SOC.

 

if you intend eventusal court then by all means use CIsheet

 

dx

[esg]

Thanks guys.

 

I'm really trying to distinguish between compound interest and restitutionary damages.

 

I understand how to calculate CI and I've already got the CAG calculators but for RD is the lender not obliged to divulge what profits it has made from the money it shouldn't have taken?

 

Does this not make CC and RD two different things then?

[dx100uk]

ims21 will see this thread soon i bet

 

but you will never get an OC to reveal its profits!

 

dx

[esg]

Will ims21 be able to offer further insight??