How do banks calculate and apply their interest charges?

[PaulS43]

Hi there,

 

Can anyone give me an idea how Barclays Bansk SHOULD calculate then apply interest on a home improvement loan with an APR of 26.7%?

 

Should they calculate interest daily which is compounded after having taken off any payments or do they do this calculation monthly.

 

The reason why I ask is it appears that Barclays have lost AT LEAST TWENTY weekly payments from a home improvemements loan where we were supposed to be able to over-pay - and although they have 'found' the lost payments, they have tagged them to the end of the statement and allowed just £27 in overcharged interest. I would like to do a spreadsheet of what SHOULD have happened had they not misplaced the overpayments to make sure that they are not shafting us.

 

But the thing is, on asking them how they calculate the interest, they just won't say !!!!!!!

 

Anyone??? Help, please

[ericsbrother]

interest is calculated daily in most cases. The APR represents the amount of interest accrued over a year if no payments were made at all so it doesnt tell the whole story. the loan agreement should tell you otherwise Barclays are breaking the law in the loan terms. If you dont have a copy ask them for one, they can charge you £1 for it and no more. If they dont send you a copy as a CCA request in the prescribed time then the debt in unenforceable, which will give you excellent leverage over them for sorting out your problems.