Clarification on charges

[Damon999]

I sent out the DPA request letter from the library last week to request my bank statements and have received a reply from them which includes

I am sorry that you have found it necessary to complain about Data Protection.

 

I am currently undertaking enquiries into the matters you have raised.

It also goes on to say that further details of how to escalate my complaint will be given if I'm not happy.

 

I find this reply a bit odd as I wasn't complaining about anything, simply requesting some information.

Is this some sort of standard reply or have they somehow misunderstood my request.

[richardc]

Probably a stock letter, but you never know!

[Bookworm]

Hi, and welcome...

 

Yes, a bit weird... But not your problem. You have set a clock ticking, stick to it. If they misunderstood, that's their problem. If they're sending stupid irrelevant letters, still their problem.

 

They've got 40 days. End of.

[Damon999]

Thanks for the super quick replies.

 

I'll give them their time and see what happens then

[Damon999]

I have recently received copies of all my statements for the last 6 years courtesy of the DPA request letter (and they did it for free which was a shock), and I would appreciate it if someone could clarify a few of the charges as to wether they should be included in the total.

 

They are:

 

Status enquiry £8.50 (I'm guessing this is a legitimate charge for something)

Card misuse £10

Unpaid item £10

 

Many thanks

 

 

 

MOD NOTE: THREADS MERGED TO ENABLE READERS TO MORE EASILY FOLLOW PROGRESS

 

Damon

[alanfromderby]

If you didn't ask for a "status enquiry", then it may be worth giving them a ring to find out what the charge was exactly for. If it was something they have done themselves then challenge it.

[Damon999]

Thanks.

 

It was back in Nov 2001, about the same date I bought my car on finance. Is it likely that the enquiry would have come from the finance company?

[Damon999]

I totted up all the charges last night, and to my surprise it came to £927.50.

 

I now need to work out the interest. Is this done on the interest charged on the penalty fees for the month those fees were taken as opposed to every month since they were taken?

 

Also, what interset rate should I use as I don't know the interest rate they applied for every statement.

 

I can't wait to get the later sent off

[Damon999]

I have now calculated the interest at the 18% HSBC charged me for all the amounts the charges caused me to be overdrawn and my final claim is:

 

£927.50 in charges

202.06 in interest

 

Total:- 1129.56

 

I hope I have calcualted it correctly.

 

I shall get the letter done and send it off tomorrow, and then wait for the standard reply!

[Damon999]

Well, I sent the leter off and before long received the standard reply refering me to the Ombudsman if I still had a problem.

 

Anyway, I have now sent the Letter Before Action which they received today, and I now wait patiently to see if they have anything more to say before I fill out the monyclaim form.

[Damon999]

I received a reply from Paul Archer today saying that he is looking into the matters raised and will contact me with a full response as soon as he has completed his investigations. I take it that I still just stick to the 14 days and if I havn't received his "report" by then I file my claim?

 

Also, is this working days as the banks don't do weekends or just 14 days?

 

Finally, please could a mod change the title of this thread to something more general.

 

Thanks:)

[neilloffhagen]

I take it that I still just stick to the 14 days and if I havn't received his "report" by then I file my claim?

 

Also, is this working days as the banks don't do weekends or just 14 days?

The 14 days includes the weekends. Banks may not be open to the public on weekends but they do work at charging you interest everyday of the year So when 14 days are up file your claim and PM one of the mods so they can add it to the litigation thread.

 

Neil

[Damon999]

Excellent. Thanks very much

[Damon999]

Well I have now received a reply from Alan Pretty stating

HSBC is, however, mindful of the management time and irrecoverable legal costs that it may incur in relation to such a claim. Fot those commercial reasons alone, and without any admission of liability whatsoever, HSBC is prepared to make a payment to you in the sum of £927.50 representing the charges applied in full and final settlement of this matter.

 

This is the total charges that they took from me, but it does not include the overdraft interest they have taken from me which is another £202.06.

 

Am I right in thinking that I should reply to this with a letter accepting that amount, but on the understanding that I shall pursue the remaining £202.06 in court.

 

If this is the case, should I give them another chance to offer the full amount or just immediately file the court action?

 

Finally, if I do enter a court claim on the remaining amount, what should I calculate the 8% interest on?

 

Many thanks

[DanielWooly]

Personally i wouldnt chase the interest if you haven't actually gone through the courts. I'd double check you've calculated it correctly as well, seems high.

[Damon999]

I calculated the interest based on 18% which was their overdraft interest rate at the time, on a cumulative scale, so that every time I was in my overdraft up to and including the amount they had so far taken in charges, I would add that interest to the total. I was in overdraft the majority of the time. I believe this figure is true to the best of my knowledge but if HSBC aren't happy with it I'm sure they could calculate it more accurately. I was actually playing it a little on the safe side so, if anything, I would imagine I underestimated it.

 

I feel that I have a right to this money, as it's what they have taken off me due to taking unlawful charges. This interest does not include the 8% that would be added if I went to court.

[Damon999]

Anyone else got any thoughts on this. As happy as I am that the charges will be refunded, I feel that they have still won in a way if I do not pursue the rest, but if it's unlikely I'd have much of a case for claiming the overdraft interest charged on these charges then obviously I will not pursue it.

 

Any thoughts would be much appreciated:)

[mailmannz]

I calculated the interest based on 18%

 

I believe the amount in interest that you can charge is 8%. However, if I was you, Id take the refund and drop chasing the interest.

 

Id drop the interest part mainly because you have used an incorrect rate (8% is all you can claim by law) and its probably not worth your time to chase such a small amount anyway.

 

Regards

 

Mailman

[sopsps]

My interpretation of this was that the '8% interest' is what you can add on to the total charges using that spreadsheet in the Library section - only if you claim through court.

 

That 8% is what would have been accruing on the money that would have otherwise been in your account (the charges) if the bank hadn't nicked it!!

 

I think the overdraft interest that you are speaking of can only be claimed back if you went overdrawn as a direct result of the bank charges... It' quite complicated to be fair & I haven't even bothered to try to figure it out myself 'cos it looked like only 12p-80p per statement. I think the amount is at the bottom of the statemnts 'interest charged'??

I hope this helps

[mailmannz]

Actually the legislation I was thinking of was the late payment legislation, which as we all know only applies to business to business relationships!

 

So, Im not actually sure what you can charge as interest however Id say that the amount you would have lost from that money not being in your account would also be bugger all (as most likely the bank was only paying you 1 or 2% interest anyway).

 

Mailman

[alanfromderby]

I calculated the interest based on 18% which was their overdraft interest rate at the time, on a cumulative scale, so that every time I was in my overdraft up to and including the amount they had so far taken in charges, I would add that interest to the total. I was in overdraft the majority of the time. I believe this figure is true to the best of my knowledge but if HSBC aren't happy with it I'm sure they could calculate it more accurately. I was actually playing it a little on the safe side so, if anything, I would imagine I underestimated it.

 

I feel that I have a right to this money, as it's what they have taken off me due to taking unlawful charges. This interest does not include the 8% that would be added if I went to court.

 

There is a line of thought that you should be able to claim interest at the same rate as the bank would charge if you borrowed money off them. This uses the principles of mutuality or reciprocity - therefore if it is a contract term that applies to one party - then it should equally apply to the other.

 

I am currently testing the water with my claim against Abbey, and if you are using that principle then the interest can be claimed with your initial approach for repayment.

 

As I said, this approach is testing the water - and when it comes to filing in court, it would be advisable to include an option in the claim that should this principle not be accepted, then you would wish to revert to the 8%, as per the County Court Act.

[Damon999]

Thanks for the replies.

 

As this seems to be a bit of a grey area, I think I will just accept the total refund in charges and let them keep the overdraft interest that they have taken due to these charges.

 

At least I will have got most of what they have (edit) back which is a good result.

 

Thanks again for all the help:)

 

moderated: please do not post what may be seen as libelous comments on this forum please ,this is to protect the site

[Johanka]

So, what happened Damon?

[dave]

No - you are right. The interest that they have charged you on the charges shouldn't have been levied either. If the charges were not taken, then there would be no interest on them.

 

I would write back saying "thanks for the offer, although you seem to have missed the interest that you charged on the charges (at the excess rate, if it is). If you agree to pay this back as well, then I will not continue with my legal action.

 

If you refuse, then I will start action immediatly."

 

Or something along those lines.

[Damon999]

Ok, well I think I'll have a go at it. Ultimately there is little to loose and I think it is important to stand up to them. I have drafted this letter. Any comments?

 

[My Address]

 

[Their Address]

 

19 May 2006

 

FINAL LETTER BEFORE ACTION

 

Dear Mr. Pretty

 

REF:*********

 

Many thanks for your letter dated 16th May offering a partial refund of my total claim.

 

As you are aware, in the period between February 2002 and January 2005, I had a total of £927.50 in ‘fees’ which were applied to my account in relation to direct debit refusals, exceeding overdraft limits and so forth. Whilst the circumstances in which these fees were applied may well have been set out in the terms and conditions of the account, the fees themselves are unlawful at Common Law, Statute and recent consumer regulations.

 

As my account was frequently overdrawn during the period in which these fees were applied, I also request that the overdraft interest that was taken from my account, on the amount of these fees is repaid. Had the fees not been taken, the overdraft interest on these fees would also not have been taken. I have calculated the total of this interest to be £202.06.

 

I am willing to accept the payment offered by you for £927.50, however, please be aware that I will still pursue the remaining £202.06. I require the full amount to be repaid within 14 days. In the event that this is not fully complied with, I will begin a claim for any of the total £1129.56 that is still outstanding.

 

Please also be aware that, should a court claim be required, the amount outstanding will also include interest at a rate of 8% as allowed by section 64 of the County Courts Act (1984).

 

I look forward to resolving this matter.

 

 

Yours sincerely

 

 

 

Mr Damon W Oldacre