Should I accept or not?

[born2bongo]

I sent a claim for refund of charges and overdraft interest to FD at the beginning of the year. The total was £850.

 

They sent the standard waffle with an offer for approx two thirds of that, which I rejected with the LBA.

 

They are now offering just the charges only, without interest. They say the reason for this is that additional interest is only awarded in a successful court case.

 

As I understand it, the interest awarded in court is on top of the interest that they have charged for my being overdrawn by the amount of their charges. It is, in effect, a credit interest in respect of my loss of funds during the time they have unlawfully withheld the charges.

 

At first I was minded to accept the current offer for peace of mind. Then I realised my account is overdrawn by a sum equivalent of the total charges plus half of the interest I am claiming. I considered going back with a counter offer to reduce my account to zero and close it with no further charges. The attempt to deceive me over the interest has annoyed me though and I am now wondering whether to continue after all.

 

OK. Now. Who thinks I should accept, who thinks I should compromise, and who thinks I should go the distance?

[livelylad]

Ok its a little confusing

 

So on your initail reuest did you ask for the charges and the overdraft interest? Or the charges and the statutory 8% court interest?

 

If you asked for the overdraft interest you can only claim the portion that is a direct result of a charge. Please clarify thank you.

[born2bongo]

I entered my charges into the MSE calculator. I've since looked at the one on this site and notice it is more specific about balances at interest charge date, etc. I entered these details and the amount was significantly less so I guess this means I've gone for the statutory interest and not the overdraft interest.

 

I guess that also means I'm too late to go for the overdraft interest, although it wasn't huge so not a big issue. I'm sure the bank know what I've done as well, so that's why they've put the comment in the letter.

 

I'm still left with the same 3 options though. Take the refund of the charges only, go for the compromise, or hold out for the full 8%.

 

Have I made things more difficult by including statutory interest when I did?

[livelylad]

I entered my charges into the MSE calculator. I've since looked at the one on this site and notice it is more specific about balances at interest charge date, etc. I entered these details and the amount was significantly less so I guess this means I've gone for the statutory interest and not the overdraft interest.

 

I guess that also means I'm too late to go for the overdraft interest, although it wasn't huge so not a big issue. I'm sure the bank know what I've done as well, so that's why they've put the comment in the letter.

 

I'm still left with the same 3 options though. Take the refund of the charges only, go for the compromise, or hold out for the full 8%.

 

Have I made things more difficult by including statutory interest when I did?

 

Ok I would forget the overdraft interest unless you want to resubmit your claim asking for it. The 8% is only added when you file at court, so if they are offering you all your charges back and you have not submitted a court claim then this is correct. You need to accept the offer as its the full amount, you have won!!!

[born2bongo]

Thanks for that, Lively Lad. I've been thinking about my situation in the light of the previous posts, and that's pretty much the conclusion I had come to.

 

That's me, then. 700 beer tokens the richer.