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Interested in Interest


tricky0000
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Hello all,

 

Hoping someone might be able to enlighten me on a couple of points.

 

Firstly, I've recently received back from MBNA the list of transactions in reply to my SAR, which of course, they didn't treat as a SAR. Anyway, the over limit and late payment fees are straightforward enough, however there are two different types of interest being charged:- cash advance interest and retail interest.

 

does anyone know what rates these are being applied at, and more importantly can i claim either of them back?

 

secondly, due to the sketchy info supplied i'm having trouble getting the interest spreadsheets to work as i don't have balance info etc. do any maths teachers out there know if the following calculation is ok:

 

total amount owed = principle(1 + r)n

where the principle is the original fee charged, r is interest rate applied per time unit and n is number of time units. so, for an £18.00 fee charged in january 2001 and using the contractual rate of 24.9% p.a., but compounding the interest monthly you would get:

 

total = 18(1 + 0.02075)74 NB: 0.02075 = 24.9 / 12

= 18(1.02075)74

= 82.28

therefore, interest owed on this amount = £64.28.

much obliged if anyone could offer some reassuring advice before i kick MBNA's ass!

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Hello all,

 

Hoping someone might be able to enlighten me on a couple of points.

 

Firstly, I've recently received back from MBNA the list of transactions in reply to my S.A.R - (Subject Access Request), which of course, they didn't treat as a SAR. Anyway, the over limit and late payment fees are straightforward enough, however there are two different types of interest being charged:- cash advance interest and retail interest.

 

does anyone know what rates these are being applied at, and more importantly can i claim either of them back?

 

secondly, due to the sketchy info supplied i'm having trouble getting the interest spreadsheets to work as i don't have balance info etc. do any maths teachers out there know if the following calculation is ok:

 

total amount owed = principle(1 + r)n

 

where the principle is the original fee charged, r is interest rate applied per time unit and n is number of time units. so, for an £18.00 fee charged in january 2001 and using the contractual rate of 24.9% p.a., but compounding the interest monthly you would get:

 

total = 18(1 + 0.02075)74 NB: 0.02075 = 24.9 / 12

= 18(1.02075)74

= 82.28

 

therefore, interest owed on this amount = £64.28.

 

much obliged if anyone could offer some reassuring advice before i kick MBNA's ass!

 

Good God! I have enough trouble with my times tables! LOL! I can't answer your formula question but you can't claim back retail interest or cash advance interest, they are entitled to charge this for the use of the card.

 

I hope somebody else can help with the other bit!

 

Good luck!:)

CLICK ON THE SCALES IF YOU THINK I HAVE HELPED!

 

I AM NOT SCARED ANYMORE!:rolleyes:

 

MBNA - To quote "The Carpenters", We've Only Just Begun..................;):D

HSBC - Settled.

Capital One - S.A.R - (Subject Access Request) issued.

Goldfish - S.A.R - (Subject Access Request) issued.

Tesco - SAR issued.

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Fair enough, thanks anyway.

 

How do i work out what interest has been charged on the fees then? if the formula is ok (and it should be - i got it off t'internet!!!), and i calculate compounded contractual interest against eeach unlawful charge, that should basically cancel out the compounded contractual interest that they've charged me.

 

won't it? my head's hurting. :confused:

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Fair enough, thanks anyway.

 

How do i work out what interest has been charged on the fees then? if the formula is ok (and it should be - i got it off t'internet!!!), and i calculate compounded contractual interest against eeach unlawful charge, that should basically cancel out the compounded contractual interest that they've charged me.

 

won't it? my head's hurting. :confused:

 

What??!! My head's hurting too!! Why don't you just use the spreadsheet and change the 8% to the appropriate rate and it will do it for you.

 

Alternatively, when you have had your statements back, add up your charges and then ring MBNA and get them to do it for you. Other have succeeded so worth a try.

 

Alternatively, somebody really clever is going to come along and help you at any moment!!!

 

IS ANYBODY THERE???!!!!!:D

CLICK ON THE SCALES IF YOU THINK I HAVE HELPED!

 

I AM NOT SCARED ANYMORE!:rolleyes:

 

MBNA - To quote "The Carpenters", We've Only Just Begun..................;):D

HSBC - Settled.

Capital One - S.A.R - (Subject Access Request) issued.

Goldfish - S.A.R - (Subject Access Request) issued.

Tesco - SAR issued.

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right, on fees totalling £2170, using the above formula i calculate that at interest of 24.9%, compounded monthly the interest is £2794.95 :eek: !

 

does that sound about right? is there anything that i've missed?

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