I won !!!!! but now have another problem.

[marmot]

I have received back all my past bank charges with interest a total of £4229.38p, and am very pleased. The cat will have some haddock tonight. But I have another matter I need to sort, which I hope someone can help me with.

 

Because my bank took all my money, in July 2003 I was required to take a loan with Barclays to cover my overdraft. The sum was £1,830.00, to which they applied £1,650 interest at a rate of 25.1%. In addition they required insurance cover which cost £600. A total cost of £4,082.80. The loan was for 60 months.

 

Since 1st Aug 2003 I have paid monthly £68.05. I have paid a total of 53 monthly payments to date. Now I obviously want a full refund, with interest. Can anyone tell me what I should claim and how to work it out?

 

In simple terms it could be 53 x £68.05 = £3606.65. But then I did not need the insurance, and this should be refunded in full. In addition they gave me £1830.00 which I should return to them. But should I apply an interest rate of 25.1% to them as well? I need to set it out in a letter to my bank in the hope they will pay it, prior to small claims court again perhaps.

 

Can any one help me, please?

[kippy2]

hi congrats on your win...

 

however your post. you cannot claim interest on a loan as this is a service and not a penalty. you may be able to get the insurance ppi back if it was missold to you.

 

im sure someone else will be along to correct me....but pretty sure you cannot get the interest back or the loan for that matter as you knew what you were taking out. :-|

[marmot]

Thanks for reply Kimmy01,

 

I must be able to get interest back, as they took my money in the first place. If they had not I would have not needed to loan. So I should be able to get all my money back to put me back to where I should be in the first place, and then be allowed to claim from them interest, but at what rate - 25.1% like they charged me?

 

A bank cannot squirrel your money away to make you take a loan out simply to live. The whole loan was mis-sold to me!

 

What does anyone else think?

[kippy2]

hi sorry but a loan is a separate issue altogether the interest is added on when you take out the loan. no hidden aganda here im afraid. but you may be to get the ppi back if it was mis sold to you. sorry not the answer you are looking for. pretty sure im right

[marmot]

Thanks again Kimmy01. I still think the answer is:-

 

1). Loans not required, as charges, now refunded, shown bank squirrelled away my money.

2). Refund of the all the money.

3). Payment of loss of interest I would have had on the money if I had it.

4). Less the loan sum.

That would put me back in position I would be in prior to Bank being naughty.

 

I think we need help from a '*anker', I think they are called - out of court.

 

ps cat enjoyed haddock

[Guest ian cognito]

This has been tackled previously, case not yet settled and now is being considered again, if the loan was soley to cover an overdraft made up of charges, you may have a case, see this thread (or at least the last few posts)

 

http://www.consumeractiongroup.co.uk/forum/lloyds-bank/54548-could-biggest-claim-site.html

[Bookworm]

Because my bank took all my money, in July 2003 I was required to take a loan with Barclays to cover my overdraft.

 

There's your cue.

 

Regardless of the circumstances in which you were made to take the loan, you had an o/d. Presumably, most/all of it was made of charges, seeing the amount you got back. The loan wiped off your o/d. Now you got your charges back, and I am going to guess that you haven't paid any of it towards your loan, right?

 

Therefore, you still owe the amount of the o/d to the bank, any way you look at it. The way you're working it out, they'd be giving you the money twice!

 

Let's try to do this simply:

You start with 0.

Charges make you o/d by -100.

Bank loan of 100, puts bank account back to 0.

You now have an bank account balance of 0, and a loan balance of -100.

CAG action, you reclaim bank charges of 100. Bank Account balance is now +100.

In your scenario, you also want to get money back from loan, 100, which would make your loan balance 0.

This means you'd have +100 more than you started with: No go.

 

On the other hand, you may well have a good case to reclaim the PPI, especially if you were forced into the loan and told you HAD to take PPI as well. You also should be able to reclaim the interest added to the loan.

[kippy2]

hi marmot seems i was wrong sorry for that but you live and learn

 

sorry

[Bookworm]

Ok, just re-read your post, and realised that you do mention having to repay the £1830, so ignore my previous post, you obviously have taken that into consideration... Sorry about that. It's just we have had people before who wanted it all written off, and I had the job of a devil getting them to understand why not.

 

Ok, so... It's a fixed loan, fixed rate, set terms, on principle, it should be fairly easy. The PPI, I take it, is included in the payments you have made? So really, you just want those sums you have paid back, and the rest cancelled.

 

Anyone wants to tell me I'm wrong, go ahead, maths is not my strong point!

 

But the way I'd work it would be:

Total Repayable:. £4082.80

Really Owed:..... -£1830.00

..................... = £2252.80

Already Paid.........£3606.65

Therefore, claim = £1353.85

 

That's how I'd do it, if it were me. I prefer simple.

[marmot]

Thanks for your replies, it is helpful.

 

Bookworm, in your workings, would I have any claim for loss of interest in that, say £1353.85p has been excluded from my use over a period of time?

 

The PPI? I assume this is the interest? Yes that started by working out the interested payment, added it to the loan, and added on the insurance. Then divided it by 60 months, and have been paying it monthly since. Therefore the sum has been paid in the proportion of 53/60.

[Bookworm]

Sorry, PPI = Payment Protection Insurance.

 

Interest: Well, if you have to issue court claim, then you'll have the 8% APR. There is an argument for claiming contractual interest instead, but I'll be honest, I am not the right person to discuss that, and even though a few people are now doing it, I personally do not feel comfortable with it. In this instance, because you have been charged both principal and interest, any funds reclaimed would include the interest charged at the same rate.

 

If you want to go down the route of contractual interest, there are a few threads around relating to it, do a search, and read up well before embarking upon it.

[marmot]

Thanks Bookworm,

 

What I would like to do is simply send a letter to ask for as much money as possible related to this ex-overdraft. I would hop they would either make me an offer, so just pay it. The fact that they refunded charges, and this is used as the basic for not requiring the loan in the first place will put them on weak ground from the start.

 

I can still remember the little **** who sold me the PPI. I think he pick a number of the air and that was his commission.

 

How to work out the interest I really don't know. Should I allow the contractual interest rate less the actual bank rate, month by month. That will provide an acurate sum of what I have lost.

 

If I took it to court then would I add on 8% as well?

[MilkTrayMan]

Hi marmot!

U can either Claim Contractual Interest @ the Daily Compounded Unauthorised O/D % Rate (...mention that U R intending claiming it @ the PL stage)...Or the s69 Statutory Interest @ 8% (...at the Filing @ Court stage)

...But NOT both!

Banks tend to compound their interest daily, yet show it as a monthly figure on your statements.

PPI is often added to the initial capital sum borrowed and the interest on the PPI is then compounded, as the capital is, throughout the loan period.

IMHO

The Correct % Rate for U to "Charge" the Bank for unlawful debits and their Associated Interest, would be the Bank's own Unauthorised O/D % Rate...Mutuality-Reciprocity!

Have a read through #19 of the following Thread link and see if U would like to apply the concept of CI in your own particular case?:

http://www.consumeractiongroup.co.uk/forum/general/54212-do-i-have-accept.html

Here is a further link to a user friendly spreadsheet (...courtesy of Mindzai):

http://www.consumeractiongroup.co.uk/forum/general/51736-excel-contractual-interest-spreadsheet.html

 

Hope this helps?!

[gizmo111]

Hi Marmot,

 

I am claiming the interest on a loan that was rolled over from an overdraft - justthe amount that related to the charges and Cobbetts/NAt West are fighting all the way to court. Read here may give you some idea of what their reaction will be http://www.consumeractiongroup.co.uk/forum/natwest-bank/11431-nat-west-3-claims.html

[marmot]

Thank you Gismo111, Now I am back on the case after sorting out another matter, your claim information will proved to be very helpful.

 

Thank you very much