calculating interest is doing my head in!

[neathboy2]

I've read lots of very informative threads regarding how to calculate and apply the appropriate intrest to your charges. However, I am of a mentally challenged disposition when it comes to figures and interest and I am totally confused. I have worked my charges out to be £339:00 incurred over a 6 year period. I am working the interest out on these charges at 1.825% per month as this is the current purchase interest rate which over the entire period totals £232:24. This makes a total of charges plus monthly interest £571:24 On top of this do I now add 34.9% which is the current APR to arrive at the contractual compound interest? If I do then the total claim comes in at £770:60 which is more than double the amount of charges initially incurred. This seems to be an awful lot, am I calculating everything right and have I got my head around the way contractual compound interest is calculated?

Any advice for me cos my head is fried !!!! :eek:

[redsonja]

Hi Neath,

I was like you to start but if you use Vamps compounded contractual interest spreadsheet it works it all out for you. Make sure you change the APR figure to your own and then enter the required details in the columns. Print off the spreadsheet and send it with your letter to Cap 1.

Hope this helps

[neathboy2]

thanks fpr the support but my mind is blown trying to work this one out. I 'm not sure if my figures are right or if In got the right apr at 34% knowing my luck I'll be the one that they defend at court and look a right prick if all my figures are wrong and the APR is grossly over exaggerated. I've read lots of threads and still confused on how to get the contractual compound interest. If I don't get my head around it I think I'll just go for the statutory 8% at the MCOL stage.

[jazzyb]

Neathboy2, if your not sure if your apr is right phone crap one and ask what your apr is. If you go to vamps chambers and use spreadsheet 13 fill in the interest rate, the charges column and the dates the charges were levied the spreadsheet will work out the amount of interest you are due.

If it turns out your apr is 34% then that is what you claim, they have NO argument.

Hope this helps

 

J

[redsonja]

Hi again Neath. I used spreadsheet 16 but you can only use that if you have got your statements. On the statements it gives the monthly % so I multiplied the highest one by 12 to get the annual. It worked out about 20.5% and this is the purchase interest which will be lower than the proper APR used in charges but higher than the 8%. I will use the arguement that the APR I am using is lower than what they charge anyway and if they want to contest my compounded contractual then it is up to them to prove my calculations are wrong. I felt like you did 1st of all but why should we pay interest on charge amounts that they shouldnt have levied in the 1st place. Have faith and stand your ground. Plenty of other people have and were paid the interest.

[ukaviator]

Hi Neatboy

You need to use the spreadsheet here:

http://docs.google.com/View?docid=dhcnzwk5_3d8k3cr

1. The original penalty charges

2. The interest we have been charged on those penalty charges

3. The interest that we are NOW charging the bank for taking those penalty charges from us:

4. The interest that we are NOW charging the bank for taking interest on those penalty charges from us.

5. Put in the information and the spreadsheet will work it out for you.

Some are using the APR from the website of Capital One.. Some use the monthly figure on their statements then times that by 12 for APR.

 

And that is the sum total of our claims.

Hopefully that made sense.

[neathboy2]

Thanks for all your help guys i've finally got my head around it and used Vampireses spreadsheet 13. Worked the APR out now at 21.9% not the 34% I initially arrived at just as well there were more holes in my initial calculations than a string vest. Anyway the new figure from the spreadsheet is charges £339, interest £336 total claim now £675:00.

Is that the final lot , I am right in thinking now that I cannot claim the statutory 8% at MCOL as well because the contractual compound interest has been calculated throughout the claim.? :)

[redsonja]

Correct, if you use compounded contractual, you cannot claim the 8% as well. Good luck!

[neathboy2]

thanks mate your advice has been great help cheers. good luck with your claim also.

[redsonja]

No worries. Their 1st response was to offer me the difference between £20 & £12 so Im sure you will get the same blurb!

[neathboy2]

They've already done just that., i had a letter on the 15the January from Mr Uddy offering me £107:00 as a good will gestureso i'm in the process of preparing my letter of rejection and then my LBA. One question can I incorporate both letters into one, it does't make much sense sending them both seperately. Now that I've worked out the contractual compound interest which is nearly as much again as the charges the overall claim is £685. If I accept this ridiculous offer minus the £10 SAR I paid,it works out they will only be repaying me £97:00. If thats the tactic they can bring it on ;)

[ukaviator]

Hi Neathboy

 

You will have to send the letters then file with MCOL. They will only pay out when they see you are serious. You will get back the total eventually with the court fees.

 

Uk

[redsonja]

Hi again Neathboy.

 

I sent an LBA with the paragragh from the rejection letter saying I reject their offer (or you can put you accept it as part payment only)

[neathboy2]

Ok thanks . I was going to send the LBA first and then send them aletter of rejection seperately . Thanks alot:rolleyes:

[TANZARELLI]

You seem to have it all in hand now. Have a read of my thread if you like as it may be of use re-rejecting etc.

 

http://www.consumeractiongroup.co.uk/forum/capital-one/51318-tanzarelli-cap-one-default.html

 

Tanz

[neathboy2]

Thanks Tanz used a quote from that appreciate it. Anyway onwards and upwards sent my LBA on the 20th jan and typed my official rejection of the settlement offer this evening which will be sent recorded post in the morning. Have given them 7 days in the LBA but with postage etc. I'll give them the benefit of waiting until the 31st january before filing MCOL. Then they can bring it on :)

[neathboy2]

mcol sent today for charges of £339 plus £10 SAR fee plus contractual compounded interest of £336.42. Total amount of claim plus costs £765.42. I've read now that Capital One are tying it on with regards to paying back interest , their paying the charges in full but no interest . Any more cases of this and has anyone challenged this practice, if so what was the result

[redsonja]

Good Luck Neath, I had to send a revised LBA in the end as changed the amount of APR I was using. I shall watch with interest!

[peaches' mum]

hiya

 

can someone tell me where i can find spreadsheet 13? ive tried the google library thing and even though ive registered for an account it keeps telling me im not allowed to view these docs!

 

what is the difference between spreadsheet 13 and 16?

[redsonja]

hiya

 

can someone tell me where i can find spreadsheet 13? ive tried the google library thing and even though ive registered for an account it keeps telling me im not allowed to view these docs!

 

what is the difference between spreadsheet 13 and 16?

 

Hi, you wont be able to get them at the mo as Vamps chamber is closed as she is looking at them again. Ive never used no.13 so cant tell you the difference. If you have have all your statements with balances etc then you can use spready 16.

[peaches' mum]

Great thank you!

[Brad Smith]

Hi guys, sorry to revive an old thread, but i'm a little unsure of something and could do with some advice if that's ok;

 

I've got all my statements for Capital One, so I'm trying to use spreadsheet 16. I've put in the details that I think are correct, changed the interest at the top to 20% (which seems to be what they charge), input all the charges, amount outstanding and balance paid the following month, but I'm a little bit unsure about the interest charged. Do I just put the entire amount they charged me that month for purchase interest, or just calculate what the interest on the charges are at the monthly rate?

 

Thanks

Brad

[redsonja]

Hi Brad,

I had the same problem and finally got an answer. You have to add in all the monthly interest that you are charged on separate lines.

You just type in the date and then fill in the interest charged bit. Make sure all your charges and interest are in date order.

Hope that helps

[TANZARELLI]

mcol sent today for charges of £339 plus £10 S.A.R - (Subject Access Request) fee plus contractual compounded interest of £336.42. Total amount of claim plus costs £765.42. I've read now that Capital One are tying it on with regards to paying back interest , their paying the charges in full but no interest . Any more cases of this and has anyone challenged this practice, if so what was the result

 

 

http://www.consumeractiongroup.co.uk/forum/capital-one/59287-has-anyone-successfully-claimed.html

 

Have a look here re them first not agreeing to CC Interest then follwing another letter agreeing to it in full.

Posts 7 17 20 i think it was.

 

HTH

[Brad Smith]

Hi Brad,

I had the same problem and finally got an answer. You have to add in all the monthly interest that you are charged on separate lines.

You just type in the date and then fill in the interest charged bit. Make sure all your charges and interest are in date order.

Hope that helps

 

Hi Sonja thanks, think i got it (like British Rail aint i?), so i add up purchase interest, payment protection interest, cash advance interest (if any) and put that into the interest column. Do I then subtract that amount from the outstanding balance? Also, is it correct to change the interest to 20%?

 

Promise I'll leave you alone after this

 

Cheers

Brad