Claiming old charges with contractual interest

[tnook]

Hi all. Starting a new thread on the journey to reclaim my very old charges. The story so far. After chasing Barclays for almost 18 months and with days to go before a court hearing they handed over my credit card statements from 2001-2004. Many thanks to everyone who helped along the way. 
 

I’ve had a quick look through the statements there are approximately 20 charges there. £15-20 pounds each. I’ll sort them by credit card account and add them to the compound interest spreadsheet.  Then update here. 

[slick132]

Glad you started the new thread and watching ..............

[dx100uk]

don't forget the shelley and martin2006 threads 

[tnook]

Ok I plugged in the charges to the spreadsheet and I am getting some very big numbers out. 
 

 I could split it into separate claims for the different credit cards. However even then the amounts are over the small claims threshold. 
 

Should I split it further? That would probably annoy the courts.

Is there a claim amount where BC start to put up a proper fight?

[craigten]

Ooh, can you give us the figures?

[dx100uk]

Are the cards still active?

if not you cant charge CI past the date they stopped charging their int IMHO

 

but you can charge staint on that total till they settle

 

Dx

[tnook]

No they are no longer active.

Why is there a limit to only charging CI during their active span?

I would have thought BC would have carried on making money on the charges I paid from the date of the charge onward.

 

[dx100uk]

nor investing at their card rate past when its not charged by them so neither can you.  

 

Rather than do CI

Use restitutional at 24.9%

Slick132 is the master on this

[tnook]

I'm learning   So contractual is different from restitutional then?

 

Can I claim restitutional for the elapsed time from the charge till the claim date?

 

Thanks for your help!

 

[slick132]

Hi Tnook,

 

What rate did you use on the compound int't spready referred to in post #4 above.

[tnook]

Hi Slick, I tried a few 24.9%, 29.9% then went to BC's website and found they charge up to 34.9% on some of their cards.

 

[dx100uk]

24.9% see Shelley thread

[tnook]

Yep I read the thread, is that 24.9% for the duration I had the cards of for the time from then till now?

[dx100uk]

Restitution..until they settle

[tnook]

Marvellous, I was getting worried.

 

Slick, why 24.9%. Not disputing it, just curious when they charge all the way up to 34.9%

[slick132]

Over the years, it's a figure that has been used successfully and is perhaps more easy to justify.

 

Also, as time marches on, older charges result in high amounts of restitutionary interest that can take claims beyond the safety of Small Claim £10K limit.

 

Let us know the approx figures you have for default fees and for compound interest thereon when  you use 24.9%.

[tnook]

Thanks Slick. There are 4 credit cards in the statements. Using the CI spreadsheet at 24.9% I get:

 

Credit card 1:

Charges = £150   (8 charges)

Comp Interest = £6,681

 

Credit card 2:

Charges = £60 (3 charges)

Comp Interest = £2,191

 

Credit card 3:

Charges = £130 (7 charges)

Comp Interest = £5,949

 

Credit card 4:

Charges = £60 (3 charges)

Comp Interest = £2,192

 

Total charges = £400

Total comp interest = £17,014

 

I guess I could run these as separate claims.

 

Edited December 4, 2019 by tnook

[slick132]

Seeking advice on this for you ..........

[tnook]

Fascinating how sensitive the percent rate is on compounded interest. I was just trying the spreadsheet with the following values:

 

24.9% -> £17k interest (as above)

29.9% -> £32k interest

34.9% -> £61k interest (currently highest interest rate BC charge customers)

 

Don’t worry I’m not planning the impossible

Edited December 5, 2019 by tnook

[slick132]

Yes, a tiny increase in the interest rate results in a significant hike in the compound interest on the spready. And the older the charges being reclaimed, the greater the effect of compound interest.

 

Advice from Site Team on the amounts involved is to proceed with card #1 claiming the £150 + £6681and card #2  claiming £60 + £2191. Total of £9,082 is within Small Claims limit of £10K.

 

Crack on though because interest will continue to rise rapidly.

 

Please remind us, have you reclaimed from BC (or other card) before.

[tnook]

Thanks Slick. Will send out the letters tonight. 
 

I started a Cahoot claim but didn’t complete. Not claimed BC before. 

[tnook]

Sorry question out of curiosity. Is there a problem with splitting a single credit card into multiple claims?

[slick132]

Yes, splitting a single card claim into multiple claims would cause problems. If/when the bank looked to settle a claim, they'd want you to agree that the refund is in F&F Sett't of all claims regarding that account.

 

Secondly, please hold off sending the letter(s) while Site Team discussions are ongoing about this case.

[tnook]

I see. Good point. Will wait before sending first round of letters. 

[tnook]

Guys just to let you know. Chasing these claims is more out of the principle for me. Truly value the help CAG give and provide. Admire the reassurance and advice you give, especially to those in desperate need. Will be looking to donate a significant portion of the final claim. 

Edited December 5, 2019 by tnook