Littlewoods penalty charges

[fuzzgun19]

Have an account with Littlewoods, which was passed to 'NDR Debt Recovery' (not sure if they are part of Littlewoods)

 

Probably a long shot, but my question is, is it possible to claim back 'Interest' as shown on the statement below?

[azessexuk]

they r a joke im sick of getting charged "admin" fees when i make a payment this rate it wont b paid off

[fuzzgun19]

I have some Littlewoods charges on 2 accounts (still currently using).

 

One has £72, and the other £48, both going back to 2008.

 

If I try to claim these back can I add interest?

 

Will Littlewoods close the accounts if I did? There's only a very small balance on one of them, but would like to keep using it if possible.

[Bazooka Boo]

Reclaim them back, and IMO add interest at THEIR rate, if they close the account, all well and good, TBH I would vote with my feet anyway and kick them in to touch.

[fuzzgun19]

Thank you. Do you know where I can find the spreadsheet for working out interest?

 

I looked at the stickys on this sub-forum, but can't see any

[slick132]

Hi Fuzzy and posts moved into your own thread that you can use from now on.

 

You should read the Interest Tutorial here - http://www.consumeractiongroup.co.uk/forum/content.php?757-Interest-Tutorial-and-Spreadsheets

 

You can use this spreadsheet to calculate compound interest - http://www.shweb.pwp.blueyonder.co.uk/interestcalcs.xls

 

For the interest rate, change it to the APR that is charged on the Littlewoods a/c.

 

Let us know what rate you use and what the approx figures show for interest.

 

For future reference, the tutorial and spreadies are in the Library (green button near the top of each page).

 

I have helped many Barclaycard a/c holders reclaim £1,000's for charges and compound restitutionary interest. With BC, you have to start court action and be willing to see it through to a court hearing. They normally settle before the final hearing but you cannot rely on this. Other banks and institutions will behave differently to BC as regards how vigorously defend against claims for compound int't.

 

[fuzzgun19]

Thanks Slick.

[fuzzgun19]

 

For the interest rate, change it to the APR that is charged on the Littlewoods a/c.

 

Let us know what rate you use and what the approx figures show for interest.

 

On my L'woods a/c, there isn't any interest, as I always choose the interest free option.

 

Should I change it to the usual 36.9% APR they seem to be charging now on some items they're selling?

[slick132]

Hi Fuzzy,

 

Please read the Interest Tutorial carefully.

 

If you choose to seek compound interest in restitution, you are not claiming back interest that they charged you. You are looking to ensure that they pay back to you any profit that they made by lending YOUR money (penalty charges) to other borrowers.

 

Personally, I would use a nominal interest rate of 24.9% on the spready. Let us know approx what figures you get.

 

Are you prepared to take court action to claim the charges plus restitutionary interest. If not, then just reclaim the charges at this stage.

 

[fuzzgun19]

These are the charges on one account. TBH I'd rather not go to court over such a small amount, and would just be happy with these amounts back.

[Bazooka Boo]

Then just claim the charges back...

[fuzzgun19]

Ok. So I just send an initial letter saying I want the £72 back. Do I still include the spreadsheet of charges, but just with no interest?

[Bazooka Boo]

As post #7....... 24.9%

[fuzzgun19]

Ok, have I got this right - If I'm prepared to go to court then I should claim 'compound interest in restitution'.

 

If not, I should claim interest at 24.9% ?

[slick132]

No, not quite. That spready I gave you calculates compound interest at whatever rate you use.

 

Send this off to them now anyway asking for the charges back, using the Prelim Claim letter from the library. See how they respond.

 

If no reply within 14 days, send off your LBA with an updated spready (it'll give slightly higher interest figures due to the further time elapsed).

 

If they still fail to respond, you can then decide how to proceed when the 14 days for the LBA are up.

 

[fuzzgun19]

Thanks for your help.

 

Can someone look over this prelim letter, and see if it's ok? Also I want to put that I'd require 'cash' and not have the funds put onto my (still open) Littlewoods account.. can anyone suggest how and where I would put that?

 

Also is the address correct?

 

 

 

 

Shop Direct

First Floor Skyways House,

Speke Road,

Speke,

Liverpool,

Merseyside,

L70 1AB

 

29th July 2013

 

 

Dear Sir/Madam,

 

CARD/ACCOUNT NUMBER: XXXXXXXX

 

I now understand that the regime of fees which you have been applying to my account in relation to late fees are unlawful at Common Law, Statute and recent Consumer regulations.

 

I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

 

I am frankly shocked that you have operated my account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

 

I calculate that you have taken £72.00 plus £42.57 which you have charged me in interest for the sums which you have taken. Total £114.57

 

I require repayment in full of this money. If you do not comply fully within 14 days, I shall begin a claim against you for the full amount plus interest, plus my costs, without further notice.

 

Yours faithfully,

[slick132]

Hi Fuzzy,

 

I believe they are Littlewoods trading as Shop Direct so you'll address them as Littlewoods. A few other changes and simplifications as well :-

 

Littlewoods t/a Shop Direct

First Floor Skyways House,

Speke Road,

Speke,

Liverpool,

Merseyside,

L70 1AB

 

29th July 2013

 

 

Dear Sir/Madam,

 

CARD/ACCOUNT NUMBER: XXXXXXXX

 

I now understand that the regime of penalty fees which you have been applying to my account in relation to late or missed payments are unlawful at Common Law, Statute and recent Consumer regulations.

 

I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law.

 

I calculate that you have taken penalty charges of £72.00 which I require to be repaid. I also seek payment of £42.57 in restitutionary interest making a total of £114.57.

 

I require repayment of this amount in full. If you do not comply fully within 14 days, I shall begin a claim against you for the full amount plus interest and court fees without further notice.

 

Yours faithfully,

 

If the a/c is still open, a refund can and should be made to your a/c. If they refuse to pay and you start court action, you can insist that they refund to you direct. This can be resolved in settlement negotiations if and when you get to that stage.

 

If they fail to respond in 14 days, update the spreadsheet, change the interest figure which will be slightly higher, put "Letter Before Action" in the heading and send that off.

 

[fuzzgun19]

I never actually got round to doing any of this. Is the above letter still good to go (and updated spreadsheet) please?

[SabreSheep]

yup still valid.

[fuzzgun19]

Thanks. Letter sent 6th Feb.

[fuzzgun19]

Why has this thread been merged with one from 2008??

 

Two separate issues. please can it be un-merged?

[Bazooka Boo]

I think because you stated that you had done nothing about this, and would the previous advice still be the way to proceed.

 

So this is a second account and debt you have with them?

[fuzzgun19]

I think because you stated that you had done nothing about this, and would the previous advice still be the way to proceed.

 

So this is a second account and debt you have with them?

Yes. The NDR thing was an Index card in hubbys name.

 

This one is not a debt, I'm trying to claim charges back.

[fuzzgun19]

Thanks. Letter sent 6th Feb.

I haven't heard anything from the preliminary letter. I assume I now need to send an LBA.

 

Would this one be ok to use as a template for Littlewoods please?

 

http://www.adviceguide.org.uk/england/consumer_e/consumer_taking_action_e/consumer_legal_actions_e/consumer_going_to_court_e/consumer_taking_court_action_e/letter_before_action.htm

[slick132]

Hi Fuzz,

 

If no reply to the Prelim Claim letter, update your SoC and resend with the same letter but with the heading "Letter Before Action"

 

Which earlier posts are not relevant to the current issue, so we can possibly de-merge if necessary.