Interest to claim or not to claim

[paulhogg1]

Ive heared differnt views for and against cliam the interest back as well as the charges, this cold if not done correctly make the claim problematic I need some good advise on this if anyone can help.:idea:

[Michael Browne]

There are 2 instances of interest you can claim:

 

1.When you go overdrawn the bank will charge you interest, perfectly lawfully.

 

However, if part of your overdraft is made up of penalty fees, they are also charging you interest on these too and it is this interest which you are entitled to claim back, but it's tricky to separate out from the total interest figure.

 

Vampiress has a spreadsheet, (the advanced one), in the bank templates library, which attempts to calculate this

 

It's quite complex and unless your claim is large may not amount to that much, so for simplicity's sake, some people don't bother

 

This is the interest referred to in the preliminary and LBA letters.

 

2. Section 69 8% interest on your claim, but only when you submit a claim at court. Don't add this interest before moneyclaim

[skbuncks]

There is also a third type of interest you can claim which is compound contractual interest. You apply this interest to every charge you have incurred at the unauthorised borring rate which the bank charges you. This is based upon the implied term of mutality and recipcrocity in the contract. There have been several successes of applying this interest and can add up to quite a tidy sum. This interest can be applied from the prelimary letter stage onwards

 

see http://www.consumeractiongroup.co.uk/forum/general/7252-new-way-looking-interest.html

 

skb

[paulhogg1]

Thanks for the info guys. Theres onother thing thats bothering me, are O/Draft Usage Fee's claimable as well, I want to make sure ive included these correctly.

[BARTY]

Hi

Yes they are, I claimed them back in my successful claim.

Good luck!

Barty

[stevencooper]

2. Section 69 8% interest on your claim, but only when you submit a claim at court. Don't add this interest before moneyclaim

 

Hi - I've seen that there are some examples of people asking their bank for the charges + 8% interest *before* they've got as far as actually submitting the court claim (see the thread on MoneySavingExpert and related advice at Reclaim bank charges: they're unlawful, so you can get six years money back | MoneySavingExpert.com - the advice seems to be to ask the bank for it in your LBA).

 

Is there some legal reason why you might not want to do this?

 

Steve

[Michael Browne]

You are only eligible to claim s69 8% interest under the County Court Act once you file at court. Prior to that the banks are under no obligation to pay it.

 

In fact, even if you get to court and win, it is awarded at only the discretion of the judge, although in practice, it would be exceptional for the judge to refuse.

[skbuncks]

The 8 % interest you can claim is under section 69 of the county court act 1984 is only to be applied when submitting a claim. As it forms part of the county court process it stands to reason that it CANNOT be applied until a claim is submitted.

I've seen the templates on MSE and IMO they're no where near as good as the ones that can be found here. They are also wrong. By requesting the 8 % before a claim is submitted you basically demonstrating to the banks that you dont know what you are doing.

IMHO i'd forget the 8 % interest and go with the higher rate of contractual interest which you can claim right from the start. Its your choice of course which you go for

 

skb