petewill19 v Nationwide

[petewill19]

Hi everyone, new to the forum and looking forward, with some hesitation, to taking on NW for approx 2K from 4-6 years ago. Very encouraging to read of successes so far. Is it now standard practice for NW to close accounts where charges are reclaimed and if so, at what stage does this happen? Will be sending off my first letter to NW shortly.

Pete

[redsue]

The standard practice of NW is very straightforward. They don't take you seriously until your take them to court and even then they serve a notice to defend. Once they have done this your home and dry, they'll start putting your money back into your account in drips and drabs. Around 3-7 days later you'll get your letter about closing your account.

Just follow the step by step instructions and you'll be quids in! Keep us informed of your progress.

[petewill19]

Hi redsue. Thanks for the info and the encouragement. I've been looking into opening a parachute account. I guess I'll need to sort that out soon. I will definitely keep you informed of progress.

[petewill19]

Another question concerning compounded contractual interest. I've been reading through various threads on this subject and it would appear to make sense to pursue interest on the unlawful charges calculated in this way. I have downloaded a spreadsheet to help matters but one thing that I find confusing (to my addled brain anyway!) is; what is the correct interest rate to apply? All of the unlawful charges on my account took place between 4 and (almost) 6 years ago. Have the contractual interest rates applied to accounts changed in the last 6 years? I'm sure that if I had time I could trawl through loads more threads on this subject but I only have access to a PC on broadband at work for a limited period each day. Even then it is painfully slow when I can use it!! Can someone enlighten me please??

[Garu]

I would use their current unauthorised rate, as on your statement.

 

(For me, it's 1.870% per month)

[petewill19]

Thanks Garu for a speedy and helpful response. Time for the spreadsheet now - something I would normally groan at the thought of - but it's great to be motivated to complete it asap and be one step closer to reclaiming what is rightfully mine.

[redsue]

Yes, Garu is completely right. Just got this info from their website for you

 

Agreed overdraft rate 7.75%

Agreed rate if Nationwide mortgage holder 7.25%

Unauthorised overdraft rate (applied to whole balance) 24.9%

 

good luck

[MilkTrayMan]

Hi petewill19!

what is the correct interest rate to apply? All of the unlawful charges on my account took place between 4 and (almost) 6 years ago. Have the contractual interest rates applied to accounts changed in the last 6 years?

The general consensus of opinion of what % Rate of Contractual Interest to apply to your Claim, is the currently advertised Unauthorised O/D % Rate (...which is incidently, tad higher than it was a few years ago!...lol).

For Nationwide this is 24.9% APR (...or as Garu says 1.87% pm).

 

Please note that with the Bank of England's Base Rate rise yesterday, Nationwide's % Rates are also like to rise in the very near future!

 

Hope this helps?!

[petewill19]

Hi MTM and thanks for the confirmation. it's all very helpful. Incidentally I've just completed entering all the charges and relevant interest rates on the spreadsheet, clicked on the tab and hey presto the interest as advised (unauthorised O/D rate - 24.9% compound) bumps the total of my claim from just over £2K (charges only) to £6K. This is a staggering amount - I hope it is correct but does mean that I will have to split the total if I want to go thru small claims. I think I need a bit of reassurance - I wasn't expecting 3X what I thought I was owed.

[MilkTrayMan]

Hi again petewill19!

...This is a staggering amount - I hope it is correct but does mean that I will have to split the total if I want to go thru small claims. I think I need a bit of reassurance - I wasn't expecting 3X what I thought I was owed.

Contractual Interest does that to people who first encounter it!...lol...

Frightening to think that is that higher figure that Nationwide have reallllly cost U, by unlawfully debiting your account those Penalty Charges and their Associated Interest isn't it??!

There are plenty of threads about of people who have Claimed +£5k in just one Claim via the FAST TRACK COURT instead of the Small Claims Court.

The process is very similar but involves stumping a bit more money up front. The result will be the same though...YOU WILL WIN!...and will get the Court fees back.

Here's a link that will tell U the cost etc in more detail:

 

Her Majesty's Courts Service - Home

 

 

Hope this helps?!

[petewill19]

Hi & thanks again MTM. Very helpful and inspires me to go after one or two other accounts (not nationwide) from the same period (credit cards and loans). I'm sure there will be a fair number of unlawful charges worth pursuing particularly with the interest from 4/5/6 years ago. Time to go digging methinks. Anyway I'll be sending off my prelim letter to NW very soon.

[petewill19]

Preliminary letter sent 19/01/07 so my claim is now up and running! They should have received it today so now eagerly waiting for the usual fob-off response before the next stage. I guess I've got to be patient though. I'll keep you all posted on progress.

[petewill19]

Forgot to add to last posting that I'm going for the charges (a tad over £2K) plus compound contractual interest @ 24.9% as calculated on the very helpful and user friendly sreadsheet (Mindzai's). This bumps up the claim to over £6K as previously reported. Watch this space!!

:)

[petewill19]

Just to update - FOB OFF reply received yesterday:mad: so I shall prepare my LBA now for posting at the weekend!

 

I find it quite surprising that Nationwide - still being a building society and boasting that they are 'Proud To Be Different' haven't yet grasped an ideal opportunity to be VERY DIFFERENT to other banks by a) Admitting they got it wrong with bank charges etc; b) Stopping charging such high penalties; and c) Starting to refund their customers where they have applied illegal charges. It may cost them BIG money but it's going to cost them anyway as more and more people realise that they can recover charges and particularly if there are successes with reclaiming beyond the 6 year limitation (have there been any yet??)

 

It will be interesting to see what is on the agenda of the next AGM?? I'm sure there will be many investors wanting to know how secure their investments are with the likelihood of a lot less cash in the kitty to maintain competitive interest rates and fund mergers with other BS's (Portman?)

 

Hey Ho!! On with the battle...............

 

Petewill:)

[redsue]

b) Stopping charging such high penalties; and c) Starting to refund their customers where they have applied illegal charges

sorry to be picky but they are unlawful and not illegal - which is kinda important if it goes to court - I know what you mean about being different - I have to admit MBNA where rather good at settling - after a bit of pushing and knowing how to play it (all thanks to this site) they actually asked me 'what would it take for us to sort this out?' - take note Nationwide...

[petewill19]

Hi redsue. Thanks for correcting me - I don't see that as being picky - it's an important point that would certainly make a big difference if one of us stood up to a bank in court and accused them of 'illegal' activities. I Don't think we would get very far with that. This is what the forum is all about - helping each other with constructive and helpful comments and corrections that can be read by everyone. We can all learn from each others knowledge - and mistakes!

Following your thread with interest - good luck.

 

Petewill

[petewill19]

A little assistance required please........I am now preparing my LBA and the template letter refers to enclosing copies of the schedule of charges etc. The schedule that I sent in with my prelim. letter was basically the spreadsheet INCLUDING the compound contractual interest calculated to the date of the letter. If I send in another copy of this schedule do I recalculate the interest to the date of the LBA Or.........do I stick with the total claimed in the prelim letter?? Any ideas anyone??

[petewill19]

OK........a quick read of other threads seems to suggest that the interest should continue to be added to the charges until the claim is filed at court. From then on I should be prepared to accept the statutory 8% if the court chooses to disagree with the CCI element of the claim @ 24.9%. If any one has any other thoughts on this topic I would be grateful to hear them. LBA being posted later today!!!

[MilkTrayMan]

Hi petewill19!

Don't even mention the s69 S.I. @8% until U file at court...and then only as In the Alternative.

Keep to your Primary Claim of the C.I. in your LBA...up dating your figures of course!

[petewill19]

Hi MTM and thanks for the confirmation. The S69 8% interest is not mentioned in my LBA (nor in my preliminary letter) and, as you pointed out, will only be submitted on the court files as 'in the alternative'.

LBA is on it's way today.

Petewill

[petewill19]

As expected, the bog standard reply to my LBA arrived so it's now on to the Court claim. Will be preparing my N1 form for dispatch asap but may have to wait until pay day as my claim will be for over £6K and will go 'fast track' with a £250.00 up front fee (correct me if I'm wrong but I will be checking other relevant threads anyway). It would seem that - having read through some recent postings - Nationwide are playing tough with claims like mine including contractual interest @ 24.9% They seem to be prepared to take matters a stage further i.e. pay all but the CI element of claims and then issue a defence to the effect that they dispute the interest element if it is not the statutory 8%. I am following various threads on this topic but does anyone else have any thoughts on this controversial issue??

[lori1]

i agree petewill that it does seem to be a controversial issue, i personally did not go for contractual as i found it very complicated and i will be happy to get back what they have taken in charges, it could be seen as taking a risk to go for contractual and i thought for me personally that the tried and tested method of charges and 8% was the best route for myself to take. i do know that there are many who would disagree with me but i am not a gambler!!(too scared) i hope someone will come along and be able to give you some better advice. best of luck with your claim. x

[petewill19]

I submitted my court claim yesterday and having read through a few more threads and checking templates etc decided to do this via MCOL. It was a little tricky getting all the relevant text into 24 lines in the 'particulars of claim' box on the form but with a bit of tweaking here and there I managed to fit in all the necessary info as guided by the template and including claiming contractual interest @ 24.9% etc and 'or in the alternative S.69 8%' etc. I will be sending in my 2 sets of schedule of charges to the court today. Total claim including £250 fee is approx £6.5K. It's all a bit nerve racking but I've stuck to my schedule - even allowing a couple of days extra here and there (mainly because I've been spending a lot of time following other threads and not actually getting on with the job in hand!! lol) A BIG thank you to all who have helped and encouraged me on this site so far. I know it could get quite tough from here on but I will stick with it I felt it would be a good move to get cracking with the court claim as there is likely to be a flood of claims processing towards court action in the next few weeks following this weeks publicity. Anyway I'll keep you all posted.

[lori1]

best of luck petewill, i too have filed my mcol(trying to get ahead of the rush!) my claim was issued on the 20th, so i will be watching your thread to see how you are getting on, have a look at my thread and i will post any information which i think will be helpful to others, it won't be long till it's all over;)

[redsue]

I submitted my court claim yesterday and having read through a few more threads and checking templates etc decided to do this via MCOL. It was a little tricky getting all the relevant text into 24 lines in the 'particulars of claim' box on the form but with a bit of tweaking here and there I managed to fit in all the necessary info as guided by the template and including claiming contractual interest @ 24.9% etc and 'or in the alternative S.69 8%' etc.

 

hi petewill - would it be at all possible to post your POC up here as I'd rather do a MCOL with Morgan Stanley for contractual - which they don't appear to want to cough up. good luck with your claim, you'll have your cash pretty soon.