How to calculate interest on charges?

[purp22]

Cannot find the answer to this - any help welcome.

 

The pro-forma letter refers to charges "plus £XXX which you have charged me in overdraft interest for the sum which you have taken". I was planning on using my statements to calculate the amount of charges rather than sending a DPA letter. Would sending a DPA letter enable me to calculate the interest? How is this calculated? The amount referred to in the letter does not sound like the same thing as the 8% statutory interest, which is only demanded on the claim form.

 

Thanks.

 

PURP22

[Spiceskull]

There are 3 types of interest that we need to be concerned with:

• 8% APR - ONLY needed if the case reaches court (and it is on all the money the banks has taken from you, and calculated for each charge from the date applied)
  
• Interest charged on your overdraft (which, in all fairness, the bank is entitled to charge)
  
• Interest charged on the charges the bank has taken from you (as they should not have taken the charge, they should not charge interest!!!)
  

However, as most statements lump these last two together as 'Interest Charges' there is almost no way that you will be able to work out what the pro-rata interest charges are.

 

If you can, then clearly only claim for that which you are entitled to. If not, then claim for the lot, and the onus will be on the bank to demonstrate what it is entitled to.

 

The point here is one of honesty - if you have only ever had one penalty charge of £30, but have £100's in interest charges, then clearly most of the interest is a valid charge by the bank, and therefore irrecoverable.

[Mrs Goggins]

Hi abcdef,

Regarding your 3rd point on interest on charges - is this right? they can't charge interest on charges? If that's the case, how do i claim this? Have already sent prelim letter and LBA, and shortly going to file claim with county court - but haven't included this interest charge in original letter.

Is it too late now?

 

Appreciate any advice

[purp22]

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