Calculating statutory interest

[gsb]

Hi, in the process of sending prelim letter to Nationwide.

 

When calculating statutory interest, is the ineterest calculated from the date of the charge or the date when they actually took the money? (i.e. 28 days after the charge.)

[Michael Browne]

The date when they actually took the money.

Section 69 8% interest can only be claimed when you submit a claim at court. Don't add this interest before moneyclaim

[gsb]

Thanks for the reply, but I have one question ...

 

On another well established website, the author of which regularly features on t.v. and radio, the advice is (if you want to) to calculate and ask for the charges plus the 8% interest that would be awarded if the case went to court - in the preliminary letter.

 

 

"It’s time to contact the bank and ask for your money back. Simply write and say you believe all the past charges (and detail them) were disproportionate and you want all the money back with interest."

 

 

Is this misinformation?

[Michael Browne]

There are 2 instances of interest you can claim:

 

1.When you go overdrawn the bank will charge you interest, perfectly lawfully.

 

However, if part of your overdraft is made up of penalty fees, they are also charging you interest on these too and it is this interest which you are entitled to claim back, but it's tricky to separate out from the total interest figure.

 

Vampiress has a spreadsheet, (the advanced one), in the bank templates library, which attempts to calculate this

 

It's quite complex and unless your claim is large may not amount to that much, so for simplicity's sake, some people don't bother

 

This is the interest referred to in the preliminary and LBA letters.

 

2. Section 69 8% interest on your claim, but only when you submit a claim at court. Don't add this interest before moneyclaim. Section 69 8% interest can only be claimed once you have submittted a claim at court

[gsb]

"The charges total £[iNSERT TOTAL CHARGE], plus as I believe I have been unlawfully deprived of the money I have calculated £[iNSERT TOTAL OF INTEREST] interest at the statutory rate, the amount the court will award."

 

Above is a quote taken from a template letter of the website I mentioned - this is a template for the preliminary letter.

[Michael Browne]

"The charges total £[iNSERT TOTAL CHARGE], plus as I believe I have been unlawfully deprived of the money I have calculated £[iNSERT TOTAL OF INTEREST]interest at the statutory rate, the amount the court will award."

1 For a court to award stautory interest, you actually have to go to court first

 

2. All awards for stautory interest, court fees, witness and expert expenses are at the discretion of the judge. They are not mandatory.

 

3. If you claim charges + statutory interest, but the bank offers full settlement of just your charges before filing at court and you refuse the offer and carry on to court, there is a good chance that the judge will strike out your claim.

[gsb]

So it is misinformation then.

[mahharg]

Hi GSB

 

I know where you are coming from but they won't pay you untill you submit your claim to the court.

as milktrayman once quoted

Or are we talking one of those 'Special' Persons here?...lol...:grin:

(...no offence intended)

 

Really wouldn't bother with the 8% untill the court stage

[gsb]

If you've read the whole thread you'll know that I was just trying to figure out which website was giving the correct advice as there is conflicting information.

[sowerby17]

well i cant see that it makes much difference as you are only telling them the amount you will claim in interest rather than you will claim ? interest if t goes tocourt

[mahharg]

You are basically stating in your prelim that you want for arguments sake £100 + 8% which you would claim under S69 of the county court act 1982 if you claimed at court. If the bank were to pay you before the court stage (very much doubt it) they are not obliged to pay your 8% so therefore won't. If they paid your £100 then you have not got a claim to make. So in answer to your question. This site advises not to claim the 8% untill you start the court claim. (tried and tested). If you were claiming contractural interest though that you claim from the prelim letter.

[gsb]

Bank charges: Reclaim them, they're unlawful, so you can get six years money back | MoneySavingExpert: Consumer Revenge, Credit Cards, Shopping, Bank Charges, Cheap Flights and more

 

 

Doesn't read like that ......

[gsb]

There was supposed to be a link to a specific page above .... but it morphed into something else!!!

[gsb]

Cool, it still works ...

[mahharg]

http://www.consumeractiongroup.co.uk/forum/faqs-please-read-these/31460-step-step-instructions.html

 

This is the step by step link on the Consumeractiongroup site.

 

The confusion here is that there are other sites assisting people to claim bank charges.

 

Some advise you to send one LBA thus missing out the prelim letter (not CAG).

some advise you to give bank seven days to reply (not CAG).

 

Some advise (the one you have read) you to write prelim asking for 8% at that stage (not CAG).

 

I have read up on a few sites and decided to follow the CAG route to getting my money back. It is up to each individual as to which sites advice they follow. As far as I know everyone gets their money back so there is no right or wrong. But I am sticking to the CAG route and wouldn't divert to another site because this might cause me confusion. I hope this answers your query gsb.

[gsb]

Yeah thanks, I am following the CAG route anyway but I was just intrigued to find out what people thought.

 

Sending prelim today - however, Nationwide have only sent me info on one of two accounts I asked for, and 40 days have now passed!

[gsb]

Received usual letter stating that their charges are transparent etc. It's quite amusing though as they say, "We appreciate the time you've taken to get in touch with us about this issue, and are grateful for the opportunity to explain the rationale behind our charging policy." - which they quite simply do not explain at all!

 

Anyway time for LBA - one question though .... Mr Mike Bowditch, the author of the letter does say that if I have any further queries, I should contact him. He does give a phone number. Should I bother or just proceed with LBA?

 

And as for previous post regarding only receiving half of requested info from Data Protection Team ... still no further contact despite messages etc.!!

[mahharg]

Hi ya GSB

 

Mr Mike Bowditch, the author of the letter does say that if I have any further queries, I should contact him. He does give a phone number. Should I bother or just proceed with LBA?

 

long time no hear, I am just wondering what happened to Mr Huntley. No one I no of has bothered wasting their phone bill where you would almost certainly get nowhere. I would proceed with the LBA but wait until the time you gave them on the prelim elapses. Unless they give you a refund LOL at any stage before court I would look at any letter sent by any bank/building society with (in my opinion) a sense of humour. Honestly they will try any trick in the book in the hope that you might believe what they say and stop your claim. You will probably get the same sort of reply to your LBA plus after that you will probably get a letter claiming that they are entitled to 8 weeks to reply to your complaint. I would ignore them, have a little chuckle and continue on my timeline.

 

Sending prelim today - however, Nationwide have only sent me info on one of two accounts I asked for, and 40 days have now passed!

sorry mate couldn't find link to complain but hope this helps. Keep us updated and best of luck!

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/516-1-data-protection-act.html

[gsb]

Thanks for the reply ... yeah long time ... things are a little awkward for me as I work away for three weeks of every month, so getting the timing right is an art in itself!

 

Sent LBA today anyway and thanked then for their non-attempt to explain the 'rationale' behind their charges.

 

Well, just have to wait and see now .....

[gsb]

Received second 'fob-off' letter today from Mr. Kevin Orchard this time. It is pretty much identical to the last one I received after sending my prelim letter.

 

I suppose I wait a couple of days and proceed to the next stage - MCOL?

[Michael Browne]

This may help:

Getting MCOL Right

[gsb]

Well .. MCOL now completed and paid.

 

Just need to send schedule of charges to the court and to Nationwide again ... Do I send these to the last person that contacted me from Natiowide? (Mr. Kevin Orchard) ... and what exactly do I say .... "please find enclosed a schedule of charges ....?"

 

Will keep y'all posted.

[clarion48]

Could somebody please explain to me how Statutory Interest is actually calculated. I've seen threads that tell you to multiply £0.0022 by 365 - all sounds very complicated to me. Not good on that stuff.

 

Any help gratefully appreciated.

[MattyH]

I believe (someone correct me if i'm wrong) that you have to calculate each charge individually. i.e. count the number of days since each charge and then multiply the amount of days by £0.0022.. for example:

 

charge £10.. days since charge 100 Interest: (£0.0022 x 100) = £0.22

Therefore total claim = £10.22.

 

PLEASE WAIT FOR SOMEONE TO CONFIRM MY RESPONSE IS CORRECT.

 

Thanks

 

alternatively, use a spreadsheet.

[Michael Browne]

You multiply the penalty charge by 8%. This gives you the interest earned on that charge in a year. Divide that by 365 to find the interest earned daily. Multiply that by the number of days between the date the charge was incurred and todays date.

 

Then do the same calculation for each charge and add them all up to find the total 8% interest.

 

Alternatively use a spreadsheet, which will do all the calculations for you.