Claiming contractual interest from day one !

[progenic7]

Hi all, i have read a few threads about contractual interest and noticed most people have generally not bothered to try and get this from the banks ect. How do people feel about claiming this and is it worth trying to state it early on in the process ?

It seems to me that if the boot was on the other foot then there would be no question of what would happen.

Maybe this is bold but i am going to state my intentions to a few of the banks and card companies in my prelim letters that i fully intend to claim contractual interest, as its the only fair way of proceeding. Ofcourse the standard court 8% will be omitted from said claims.

 

Any thoughts anybody ? am i being over optimistic or have i got balls ?

[Bigmac versus]

You feel confident about it go for it just as some people dont feel confident about it, i got contractual interest as i made it part of my total claim. You must state you are to claim this from the prelim and the lba, good luck.

[marcelle]

I also claimed contractual compouded interest and immediately indicated this on my prelim. letter. My application is pending so awaiting their standard "get outta here" letter.

[Pen]

Hi, there is quite a large thread on here already about contractual interest and although it explains how it works in detail over and over again. I was still no clearer in understanding it. I do know you have to claim it from your Pre-lim letter. I did fill in vamps spreadsheet on basic contractual interest which I'm sure includes everything and which works fine as all I had to do was fill in the boxes and add the interest rate of 29.9% great, printed it of and that is what I am using for court. (thanks Vamps) I just hope the figures are right. But!!! having just read the main thread I am once again confused since some posts talk about claiming the interest twice ie contractual then compounded which just did not make sence to me, so I am now not so sure at all . all I know is that according to the spreadsheet I have filled in a charged for a O/D usage Fee of £70, on the 3rd Jan 01, the interest to present day @29.9% worked out at £161.56 so the total charge plus interest worked out at £231.56 does this seem right? I think the more you try to understand something the harder it gets, well it does for me so I have just done as advised and not tried to think to much. please tell me if I have it all wrong

pen

[Stornoway]

Hi, there is quite a large thread on here already about contractual interest and although it explains how it works in detail over and over again. I was still no clearer in understanding it. I do know you have to claim it from your Pre-lim letter. I did fill in vamps spreadsheet on basic contractual interest which I'm sure includes everything and which works fine as all I had to do was fill in the boxes and add the interest rate of 29.9% great, printed it of and that is what I am using for court. (thanks Vamps) I just hope the figures are right. But!!! having just read the main thread I am once again confused since some posts talk about claiming the interest twice ie contractual then compounded which just did not make sence to me, so I am now not so sure at all . all I know is that according to the spreadsheet I have filled in a charged for a O/D usage Fee of £70, on the 3rd Jan 01, the interest to present day @29.9% worked out at £161.56 so the total charge plus interest worked out at £231.56 does this seem right? I think the more you try to understand something the harder it gets, well it does for me so I have just done as advised and not tried to think to much. please tell me if I have it all wrong

pen

I've recently claimed successfully for simple contractual interest from date of claim (i.e. not compounded), my charges were £1600 whilst basic and contractual interest together were about £1800 so your numbers sound about right. I went for simple rather than compound calculation as i wanted to keep the claim straightforward in case of the very unlikely event that i get interrogated in court !

[Pen]

Hi Stornoway, I was dreading reading your post in case i had understood it all wrong. Thanks I can now rest easy

Pen

[Stornoway]

No worries, just realised my int rate was also a fair bit lower at 22% so your calc looks even more realistic !

[progenic7]

hi all,

 

lol i still think im not getting the hang of this compound contractual interest thing, i have that many spreadsheets now i dont know where to start.

 

i got another one off mindzai and that just made things worse lol

 

i give up, im changing tack and going to pay the bank instead it will be easier..

 

[Pen]

Progentic, don't do that, honestly I am as thick as 2 shorts planks with a comoputer and maths but if you just add the details in vamps basic contractual spreedsheet then thats it bobs your uncle so to say. I have seen quite a few and your right I would'nt know where to start but vamps is great.

 

One thing I do have to say is when I looked in the spreedsheet templates I could not find vamps only the imported one for the 8%, so you will need to find it. it's the one that you have to sign up to google, best thing would be to PM vamps may be she will let you have a copy, if i knew how to send it by attachment i would send you mine, but thats how bad i am so if i can work it out so can you.

good luck

pen

[pombix04]

Hello everyone, Pombix04 here, my friend gave me this site to explore as I am absolutely disgusted with my bank amongst other things. One thing I would like to know is what is Vamps? and how do you calculate all these charges correctly? Anyone?

thanks Pombix

[Ros2710]

I went looking for Vamps spreadsheets today (google ones) as I wanted to do another claim, It appears they are offline at the moment 'cos they are being amended.

[progenic7]

Hi Pom,

 

Vamps is a CAG member better known as Vampiress, she is a wizard with the old spreadsheets and has her own pages hosted by Google power. there is a link in the library to her pages somewhere, have a good look around the site and you will get a much better idea of whats on here and where to find it.

personally i have found some of the spreadsheets that are doing the rounds a bit too basic, others way too complicated and others that are plain inacurate.

In recent light of what some of the banks are trying in court its all too important to be right on the money so to speak !

[Bigmac versus]

Yes progenic 7 interest calculations can be different on many occasions and as the banks often say as well when they calculate what the interest should be as APPROXIMATE INTEREST.

[Pen]

I think Vamp's one's are wonderful, and attuned to all levels of understanding, I for one am very grateful to her, How many people would give all that time and energy just to help us out ? I suppose if your clever enough you could always do your own like some have done or pay a accountant (if you can afford one) to do it for you. I am not, so greatly rely on the help and support of other's who help to make the claiming process so much more simple. thats what makes this site so wonderful.

Pen

[progenic7]

Im going to be very careful when it comes to working out the interest, ie do it with several spreadies and refer back each time, then maybe get a few peeps to check it over for me.

I think if we give the judge the option in out PoC ie compond contractual @ say 29% first option, then 23%, then 16.9% then s69 @8 % simple he has the options there to see your being very fair and open to suggestion, and as long as he can see you attempted making it as accurate as possible i dont see a problem really. And yes like you say the banks often work on the principle of Approximate !

 

progenic

[Pen]

Progenic, In my N1, there is a certain paragragh you have to write when claiming contractual interest meaning whats good for the goose etc I put down 29% which is my banks unaurthorised borrowing rate, check out your banks If the judge does not agree you add that he could choose the alternative S69 8% I can not think of these words at the top of my head but it is very important that you add them. You need to do a bit of digging around, I personally not give the court all the options but you will find completed POCs on here which list them both. anyway it is all explained in the FAQs

Hope this helps good luck

Pen

[Ros2710]

This is what I put on my N1 I submitted yesterday -

 

The unarranged overdraft rate is charged to the Claimant, via the Account, when the Claimant draws money from the Account whilst he/she has not obtained permission from the Defendant for exceeding any overdraft limit that he/she has. It is in effect, a rate that the Defendant charges the Claimant when he/she draws funds from the Defendant when he/she has no right for doing so.

 

Using, that reasoning and maintaining the principal of equity, mutuality and reciprocity between the parties, the Claimant contends that he/she is entitled to an equal rate of interest in this case. The Claimant notes in particular that the Defendant erred in law, had no legal right to levy the charges to the Account and refused to refund the Charges when asked to do so by the Claimant.

 

If the Terms and Conditions form part of contract between the parties hereto then there is an implied and/or imposed term of contract that the Defendant must pay the Claimant at the same rate of interest which it reserves for itself, in similar circumstances. If no express contract exists between the parties hereto then the Claimant contends that an implied and/or imposed contract exists between the parties hereto relating solely to the Claimant’s right to charge interest to the Defendant at the rate which it reserves for itself in relation to similar circumstances.

[Pen]

This was very kindley given to me by GaryH, I,m he won't mind if other used it.

 

5. Accordingly the Claimant claims:

 

a) the return of the amounts debited in respect of charges in the sum of £**;

 

b) Court costs;

 

 

c) interest at the contractual rate of **% AER, from the date of each transaction to **/**/**, which is £**, as set out in the attached list of charges. The Claimant further claims interest, on the resulting total of £**, at the same rate up to the date of judgment or earlier payment, at a daily rate of £**.

 

The Claimant believes this rate to be justified under the implied principle of mutuality and reciprocity, and is based on the Defendants interest rate that would be applied under the terms of the above mentioned account.

 

Should the court find that this interest rate is not applicable, then in the alternative the Claimant claims interest pursuant to Section 69 of the County Court Act 1984 at the rate of 8% per annum calculated from the date of each transaction to **/**/**, which is £** and also interest at the same rate until date of judgment or earlier payment at a daily rate of £**.

I believe that the contents of these particulars of claim are true.

 

Pen

[pc23]

I'm about to send my LBA to Cap One - but I have some serious doubts about the spreadsheet I have used (taken from here... 6. Interest calculation spreadsheets I have used England - Advanced - Excel). Or put more accurately how I've used them. In a nutshell... the sheet does the following to calculate simple contractual int.

 

(Total amount charged in fees over the period of time)

 

Divided by

 

(The statement balance Month 1)-(the payment made in respect of that eg. the one which appears on Month 2 statement)

 

Multiplied by

 

Total interest charged as per Month 1 statement

 

= interest to reclaim for Month 1

 

I might be being thick, but I don't understand why the following month's payment needs to be deducted? Can anyone explain to set my mind at rest?

[progenic7]

pc23,

 

im sorry but for the first time in a while i cannot answer your question ,

i am by no means an expert in spreadsheets and would not like to guess at the answer.

I just put my figures into them and it produces a claim for me, funny how we take so much for granted huh.

Although you have raised an important point, because it is important to understand the hows and whys of these spreadsheets becasue the judge may well ask, how we have arrived at these figures.

 

If however you go along to this thread and ask the same question, im sure a friendly fellow may oblige your request. http://www.consumeractiongroup.co.uk/forum/general/51736-excel-contractual-interest-spreadsheet-5.html

[nightwalker]

hi what spreadsheet did u use to calulate the contrctual interest .did you just change the percenatge rate to whatever yours is

[Stornoway]

I'm about to send my LBA to Cap One - but I have some serious doubts about the spreadsheet I have used (taken from here... 6. Interest calculation spreadsheets I have used England - Advanced - Excel). Or put more accurately how I've used them. In a nutshell... the sheet does the following to calculate simple contractual int.

 

(Total amount charged in fees over the period of time)

 

Divided by

 

(The statement balance Month 1)-(the payment made in respect of that eg. the one which appears on Month 2 statement)

 

Multiplied by

 

Total interest charged as per Month 1 statement

 

= interest to reclaim for Month 1

 

I might be being thick, but I don't understand why the following month's payment needs to be deducted? Can anyone explain to set my mind at rest?

I've created my own spreadsheet for the very reason that progenic mentions - i want to be able to fully understand what is going on in case I am challenged. For the spreadsheet you are using i suspect the following months payment is deducted so that interest is calculated on the lowest balance in the month so that an overestimate of balance o/s isnt made.