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Refund Interest Calculation

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A major bank (per this thread section) has contacted me regarding incorrect charges that were wrongly added to a loan I had with them back in 2006 which was settled in 2007.

In calculating the refund amount, they added simple interest @8%pa (13 years worth) to the repayment. I remember reading somewhere that such interest should be compounded instead of simple. The difference in final amount between the two methods of calculation is fairly significant.


I wanted to know if you were aware of the case law(s) or legal principle(s) applicable so as to apply compound interest as opposed to simple interest to the refund amount? Or perhaps you can refer me to something to read? I'd like to request compound interest if at all possible. I don't want to waste time trying to get Compound Interest unless there are strong legal grounds for doing so.


Left to them of course, they prefer to pay simple interest as the figure will always be less.


Many thanks in advance.


The matrix is intrinsically flawed. Within it is the program for it's own destruction. If you are reading this, you are in the matrix and it's days are numbered...so watch out! :eek:

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I will guess this is because they didn't send Notice of Sums in arrears letters.

interesting to see hfc doing this, though I will guess its HSBC tidying up the mess they inherited.


if the creditor fails to provide a notice of sums in arrears when required to do so,


then during the period of his failure to provide the notice (i.e. from the date that it was required to be given until the end of the day on which it is eventually provided),


he is not entitled to enforce the agreement.


In addition,


The debtor is not liable to pay any interest that relates to the period of the creditors failure to supply



they have deprived you of the money by charging said interest

it cant be compounded

please don't hit Quote...just type we know what we said earlier..


if everyone stopped blindly paying DCA's tomorrow

the biggest financial industry in the UK, DCA;s -  would collapse overnight.


DCA's view debtors as suckers, marks and mugs - that's why they will never tell you they are not bailiffs and have absolutely zero legal powers on any debt.



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