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Authorised & Unauthorised Interest Rates


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I have sent my S.A.R - (Subject Access Request) and am awaiting those diligent Lloyds TSB employee's response. While at first I thought that 40 days was too much to wait for, it has certainly given me time to reflect, read and learn a lot. My first advice to anyone starting a claim is read the FAQ!!!


Anyway, while i have a rough idea of how much they owe me I am now interested in getting as much £ as I can, and I am planning on doing this by calculating compound interest.


The following is a good quote I got from a different thread (I coloured it blue as I haven't sussed quotes yet). What I particularly like is the fact that it covers my back. I.e pay me loads & loads (unauthorised interest), if not pay me loads (authorised interest) if not just pay me my 8% (still loads)


- There is an implied term of contract that the customer can charge the bank at the same rate which the bank allows itself to charge the customer in similar circumstances.

- Under such a term interest due to the customer is calculated at [unauthorised overdraft rate]% per year. Ergo, interest at said rate due to the customer amounts to £[AMOUNT] plus £[daily amount] per additional day; or

- if customer isn't allowed to charge such a rate, then customer can charge interest at the authorised overdraft rate. Under such a term interest is [authorised overdraft rate]% per year. Ergo, interest at said rate due to the customer amounts to £[AMOUNT] plus £[daily amount] per additional day; or

- if customer isn't allowed to charge either rate to the bank then customer is allowed to charge the bank interest pursuant to s69 County Courts Act 1980 (date?). Interest under the 1980 Act is 8% per year. Ergo, interest at said rate due to the customer amounts to £[AMOUNT] plus £[daily amount] per additional day.


I am planning on sending the following letter to my bank to get an idea of how much their rates have been over the past 6/7 years that I have had an account with them, and i was hoping someone could proof read it and offer any advice on it as well.


Dear sir or madam,


Could you please supply me with a list of all authorised and unauthorised overdraft interest rates that have been applied to my accounts through out the entire lifetime of these accounts.


In particular, I am looking for a list detailing specific dates that these charges have been in force. To simplify the matter, the data I am looking for is as follows:


January 1998 – March 1999 Unauthorised Overdraft Rate xx.xx %, Authorised Overdraft Rate xx.xx %.


I believe it is your duty as a credit holder to be able to provide me with all of this information.


If for any reason you are not able to supply me with this information then please notify me by return of post. Also, I expect this information to be delivered to me within 14 days. I trust this to be sufficient time for you to authorise my request.


Should you need any more information as to my request then please notify me in writing by return of post.


Yours faithfully,


[email protected]:14


Oh, I am a bit of an Excel guru (part of my job), so once i collate the data I will create a spreadsheet taylored to for Lloyds TSB cust...victims for all to use.

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___From_____To_____Authorised Rate__Unauthorised Rate

01/01/2000 11/02/2001___18.90%____________26.80%

12/02/2001 23/09/2001___18.60%____________29.80%

24/09/2001 02/04/2002___18.30%____________29.80%

03/04/2002 31/05/2004___17.30%____________29.80%

01/06/2004 04/07/2004___17.60%____________29.80%

05/07/2004 05/09/2004___17.90%____________29.80%

06/09/2004 31/08/2006___18.20%____________29.80%

01/09/2006 31/11/2006___18.40%____________29.80%

01/12/2006 05/01/2007___18.70%____________29.80%


For those still interested these are the historic interest rates for Lloyds TSB. Unauthorised interest rates have remained at 29.8% (since 12/02/2001) while the authorised ones have varied slightly with the BOE base rate changes.


In the process of creating a spreadsheet to calculate both, hoping to complete it by the end of the weekend. 11pm on a friday night and I am designing spreadsheets, I used to have life I think.


Anyway...my arguement for this is to charge 29.8% compounded from day 1. Plan B is to ask for the authorised interest rate, but while I am hoping that i get the full whack, detailing the charges might stand me a better chance while arguing mutuality.


Any comments please post on my thread. Link in signature.

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Hi. Good luck with that, I'm new to this and it's encouraging to learn from those who are currently achieving what I hope to.


Just one question.. what basis do we have to apply for the current overdraft interest and apply it to charges that would have had a lower interest rate applied at the time they were levied (taking into account fluctuating interest rates over time).

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Hi Bankerhost, and welcome to the forum. First bit of advice is read, read and then read some more. Knowledge is the key to a smooth(ish) claim.


Yes, the interest rates do fluctuate. At the moment people are going for the standard 8%. This seems to be granted everytime by the court so no real biggie in calculating it (spreadsheets available on the forum by Vampiress and a few others, should be easy to find).


What I would like to claim for is the unauthorised overdraft rate, or failing that at the authorised o/d (over dose) rate. To do so I am creating a spreadsheet that will calculate the interest rates automatically throughout the fluctuations. So far its 12:36 am, (jesus, social life!!!) so I am calling it a day and hitting the sack. I am planning on getting it done by the end of the weekend or early next week. The idea is you type in date and amount of charge and it does it all for you. I will be posting this once its complete. Need to find somewhere to host it though, I am sure someone will offer some advice on that one.


Again, good luck on your claim, take your time and don't rush into it.

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So am I right in assuming that if we are to apply the banks overdraft rate (authorised or not) we must apply it at the rate that it stood at at the date that the charge was made and then follow and apply the fluctuating rates up to present day?


Are you going to calculate the interest daily? Will you be compounding the interest and if so do you do that on a daily basis?






PS. What's a social life?

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Not so straight forward.


My arguement revolves around the fact that as the bank charges are illegal, they effectively "borrowed" the money from me and, as such, I should be able to charge them interest on it at the unauthorised interest rate (because I certainly did not agree to the borrowing). My arguement revolves around "mutuality", i.e. I charge what they charge.


Some people have tried claiming a flat rate of 29.8% (unauthorised), and so would I, however, I want to charge them the full whack, and charge that 29.8% calculated at a daily complex rate. To cover my back thought I would like to put the following case to the judge: Pay me at the unauthorised rate, if not pay me at the authorised rate, if not just pay me the standard 8%.


I am hoping that, by calculating interest at an accurate and fair rate (particularly at the authorised rate as the unauthorised rate does not fluctuate much) a judge may look at it that I am building a case for mutuality and I am asking for nothing more than they have charged me.


A long shot maybe, but a shot worth taking.


As for the social life, I don't think I (or the vast majority of people on this forum) can help on that. I have photographs of when I had a social life, serves as a reminder, but the memories are long gone and those photographs are all I have left. Saying that, should I be successfull in claiming around 14K i think my social life will reappear.

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Hi Red


Looking forward to seeing how you set up the spread sheets.


In mean time check out my thread "important offer from Lloyds (today 15.32) you may not have to go as far down as 8% as they offered me 12% with out even asking them.

LSTB (business) S.A.R - (Subject Access Request) received 10th Dec prelim + Contractual interest claim sent 10th Jan07 £5k + change

Received partial reduction mount of £5,563 against loan & overdraft of £18k i.e. 30% reduction. Next step PPI's & managed loans. Jan 07


LSTB (Girlfriend) prelim sent 10th Jan07 1st account £670

Received partial refund into account of £457 9th Feb, sent rejection letter. donated 5% 10th Feb

LSTB (Girlfriend) prelim sent 10th Jan 07 £1,450

HSBC S.A.R - (Subject Access Request) sent 27th DEC (approx £3000)

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Hi Capitulator,

Working on the spreadsheet at the moment. Got my my basic template together and the standard 8%. Currently calculating the fluctuating rates, bit of worked involved but I'll suss it out, sadly, I quite enjoy these kind of projects, kind of a big sudoku puzzle. How sad, i should re-read my post on social life.

I'll drop by your thread, surprised they offered 12% maybe they are starting to feel the heat and this is a "goodwill" kind of gesture to avoid the full whack. Seems very promising.

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I totally understand and agree with the concept of mutuality, my query is more concerned with the actual interest rate that you will apply..I presume that the 29.8% is their current unauthorised overdraft rate. If your argument is mutuality then should you not be applying the unauthorised overdraft interest rate that the bank applied when they levied the charge against you, not the current rate?

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yes, and that is what i am trying to put together at the moment and the historic rates posted above.

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