Littlewoods penalty charges

[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.

 

[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.

 

[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.

 

[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.

 

[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.

 

[slick132]

Oh, and you can use this for the LBA, suitably adapted to reflect your own case - http://www.consumeractiongroup.co.uk/forum/showthread.php?405889-Reclaiming-Credit-Card-Charges-Preliminary-Letter-Before-Action

 

The one from the CAB site was for a trader/consumer dispute.

 

I hope that's not what you used for your Prelim Claim letter.

 

[slick132]

Hi Fuzz,

 

You should have been preparing your claim while waiting for their reply to the LBA and, if they failed to reply with the 14 days you gave them, you should have moved on with the claim.

 

In any event, you now need to file the claim using CCMCC, Salford using Paticulars of Claim (PoC) from our Site and your updated SOC.

 

[slick132]

No !! That is a commercial site by the looks of it. Use them and they'll charge you for their services, in addition to the court fees you always pay (unless you qualify for Fee Remission).

 

The HMCTS free site (identified by the gov. in the address) is here - https://www.gov.uk/make-court-claim-for-money/overview

 

[slick132]

Hi Fuzz,

 

You should not start court action unless you are prepared to attend court if and when required.

 

If the defendant is aware that you'll do anything to avoid court (by watching our forum), they may take advantage of this and let the case go to a hearing.

 

Others may want to comment specifically about the chances of Littlewoods taking the case to court as I don't know.