NatWestt CC - OFT Report 2006 Referenced

[flatwebb]

Hi all,

 

I'm about to prepare to submit a claim to Court in respect of Credit Card charges (over limit and late payment fees) incurred between 2001 and 2006. I have all my statements thanks to a Subject Access Request.

 

NatWest have, obviously, refuted my claim thus far. However I'm particular interested in two paragraphs contained within their last letter to me on 3 July, which reads:

 

"Following the publication of the OFT report in April 2006 Royal Bank of Scotland reduced its default charges to £12. Our charges of £12 are in line with the actual and estimated costs of default and with the general legal principles outlined by the Office of Fair Trading's April 2006 statement.

 

It is under the above ruling that we would only review charges applied within the last 6 years, any charges applied prior to this would fall outside the statute of limitations as advised previously."

 

I had already made reference to to the precedent set between KLEINWORT BENSON -v- LINCOLN CITY COUNCIL under section 32 © of the limitation act 1980 in my previous letter to NatWest. Is it worth following that up now with something to specifically address the two paragraphs above before moving on to Court action?

 

Any suggestions and/or advice would be much appreciated

[citizenB]

As this is to do with a claim, I will move your thread to the General Legal issues, where I am sure those who will be able to help will do so.

 

You dont need to do anything, this is purely an administrative move.

[ims21]

The OFT statement only said that they would not investigate charges of £12 and under.

 

Their same report said that it was not for the to say whether they were fair and only a court could decide on that.

 

The OFT statement also has nothing to do with the Limitations Act or has any influence on it.

 

Have you done a "Letter Before Action" yet or just a preliminary letter of claim?

[flatwebb]

Have you done a "Letter Before Action" yet or just a preliminary letter of claim?

 

I've sent both to date, and both included a Schedule of Charges spreadsheet with the incurred fees itemised, compound interest etc.

 

My last letter to them (01 July) referenced the above case law and included a final paragraph stating; "If you do not comply fully within 14 days, I shall begin a Court claim against you..." etc, so they know I intend to use court action rather than the Financial Ombudsman Service.

[AndyOrch]

Thread moved to Financial Legal Issues.

 

Andy

[SabreSheep]

http://www.consumeractiongroup.co.uk/forum/showthread.php?423796-SabreSheep-Vs-Natwest-Moorcroft

 

May be of some use to you.

 

I am currently in the litigation phase, I have served NW and had some pre defense correspondence with their litigation team.

 

I should get their defence back this week or early next week. It appears they will not like the contract interest part of the claim. They will state an authority that says you are not entitled to compound interest. (Although that authority does state you are if you read the case in detail)

 

You might want to switch to claiming interest in restitution as It is easier to calculate and does not require you to tie yourself up in knots working out interest charged for different periods. You would also be able to claim statutory interest on top.

 

Another good thread is this one for Barclaycard.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?309037-Charges-older-than-6-years-***WON***-Compound-Int-t-and-**NO-SET-OFF**/page4

[ims21]

I've sent both to date, and both included a Schedule of Charges spreadsheet with the incurred fees itemised, compound interest etc.

 

My last letter to them (01 July) referenced the above case law and included a final paragraph stating; "If you do not comply fully within 14 days, I shall begin a Court claim against you..." etc, so they know I intend to use court action rather than the Financial Ombudsman Service.

 

Ok so you do not need to enter into any correspondence with them. They have given you a refusal to refund so now you just proceed via the courts.

[flatwebb]

You might want to switch to claiming interest in restitution as It is easier to calculate and does not require you to tie yourself up in knots working out interest charged for different periods. You would also be able to claim statutory interest on top.

 

Thanks. Would changing to interest in restitution be possible though in my instance? The charges were applied over 6 years ago now (2001-2006). The interest rate I added to my SOC was 19.4%, which was their rate at the time (I think, I might need to double-check that)...

[SabreSheep]

You would need to reissue your claim letter and lba to change the complaint

[SabreSheep]

be warned though there are no real sucess stories on Natwest with restitution. It appears I may be the first to have one if it goes my way

[flatwebb]

be warned though there are no real sucess stories on Natwest with restitution. It appears I may be the first to have one if it goes my way

 

Has no one else tried before? That seems odd. Any failed attempts thus far?

[SabreSheep]

No failed attepts I can see either

 

although search under RBS as it is RBS you will be dealing with

[flatwebb]

Interesting, seems like you're gonna be the first to possibly be successful then like you said.

 

On a related note, I paid the balance and closed the credit card account concerned with my claim back in July 2006. In respect of compound interest on the charges, does this mean I should only calculate interest up until the date of closure of the account? I've assumed that was the correct method, but would appreciate some clarity if anyone is able to advise?