Interest-a bit confused

[adrian1972]

Hi,

 

Still waiting for my statements but busy planning ahead for my prelimanary letter (step 2) and i'm slightly confused by this:

 

Enclose a schedule detailling the charges you are claiming but do NOT include the 8% interest on the schedule yet.

 

But in the prelimanary letter it says this:

 

I calculate that you have taken £XXXXX plus £XXX which you have charged me in overdraft interest for the sum which you have taken.

 

This is the bit i'm confused about you are telling them you want the interest but arent telling them how you arrived at that figure?

Also am i right in thinking that the schedule is just a list of charges, dates, amount etc?

 

Does the interest remain 8% wether you were overdrawn or not when the charge was made?

 

Phew, sorry for all the questions at once

[jimmy76]

Hi Adrian, I just received my statements yesterday and i too was confused by this. In the Prelim letter i just deleted the bit about interest and wrote "i would like to point out that i will not be claiming any interest at this point".

 

I havent sent it yet. Just curious if this is ok or will Barclays lawyers jump all over it?

[dickeggsy]

i think the 8% interest is applied once you begin a claim (section 69 of the county court act).

the prelim letter is just asking for the charges back so you could delete the bit about the interest , that's what i did.

when i sent my letter before action i stated that i would be claiming the interest under s69 if they didn't respond positively .

but i suppose it's up to you.

[adrian1972]

Hi Adrian, I just received my statements yesterday and i too was confused by this. In the Prelim letter i just deleted the bit about interest and wrote "i would like to point out that i will not be claiming any interest at this point".

 

I havent sent it yet. Just curious if this is ok or will Barclays lawyers jump all over it?

 

Hi,

 

Did you eventually send it?

[Falcom]

Hi I think you are getting a bit confused about the interest.

 

You are claiming the charges back eg. unpaid referrals etc so this is one column of your spread sheet and they are simple to see on your statements. If you run your account in overdraft you will be charged a level of interest (this is your authorised overdraft interest) up to your overdraft limit which is all part and parcel of having an overdrawn account. If you go over your overdraft limit the interest you pay on the overdraft increases and this is "unauthorised overdraft interest". What you also want to claim (and the spredsheet will work this out for you) is any unauthorised overdraft interest you have been charged due to you going over your overdraft limit because of the bank charges.

 

For Example: Your overdraft limit is £500, your balance is -£490 you are therefore £10 below your overdraft limit. However barclays come along and charge you a £35 fee this means you are now overdrawn by £525 (£25 over your limit). Barclays now charge you unauthorised overdraft interest because you have gone beyond your limit BUT they caused you to go over this limit and if the charge had not been imposed by them you would be fine.

 

So use the spread sheet and let it work it out for you and you can claim this right from the start.

 

The 8% interest is the interest the courts allow you to add on to your claim because Barclay have your money. So if they took a charge of £35 five years ago you could have saved that £35 and you could have earned 5 years interest on it.

 

So it goes something like this:

 

Prelim and LBA - Charges + Overdraft Interest on charges

MCOL & AQ - Charges + 8% on charges + Overdraft Interest on charges + 8% interest on the Overdraft interest on charges

 

Sounds complicated but the spreadsheets in the template lib will work it our for you.

 

Peter

[adrian1972]

Hi I think you are getting a bit confused about the interest.

 

You are claiming the charges back eg. unpaid referrals etc so this is one column of your spread sheet and they are simple to see on your statements. If you run your account in overdraft you will be charged a level of interest (this is your authorised overdraft interest) up to your overdraft limit which is all part and parcel of having an overdrawn account. If you go over your overdraft limit the interest you pay on the overdraft increases and this is "unauthorised overdraft interest". What you also want to claim (and the spredsheet will work this out for you) is any unauthorised overdraft interest you have been charged due to you going over your overdraft limit because of the bank charges.

 

For Example: Your overdraft limit is £500, your balance is -£490 you are therefore £10 below your overdraft limit. However barclays come along and charge you a £35 fee this means you are now overdrawn by £525 (£25 over your limit). Barclays now charge you unauthorised overdraft interest because you have gone beyond your limit BUT they caused you to go over this limit and if the charge had not been imposed by them you would be fine.

 

So use the spread sheet and let it work it out for you and you can claim this right from the start.

 

The 8% interest is the interest the courts allow you to add on to your claim because Barclay have your money. So if they took a charge of £35 five years ago you could have saved that £35 and you could have earned 5 years interest on it.

 

So it goes something like this:

 

Prelim and LBA - Charges + Overdraft Interest on charges

MCOL & AQ - Charges + 8% on charges + Overdraft Interest on charges + 8% interest on the Overdraft interest on charges

 

Sounds complicated but the spreadsheets in the template lib will work it our for you.

 

Peter

 

 

The penny's dropped now thanks Peter, does sound very complicated but the spreadsheets are very user friendly.

 

Thanks again

 

Adrian