APR for HSBC + Overdraft Interest

[mollythemonk]

Hi, i have recently recieved a copy of my statements for the last 6 years with HSBC, however i am no longer with the robbing b*****ds. Does anyone know roughly what their interest rate is (APR) for the purposes of my spread sheet. Also is their overdraft limits interest free?, as i am unable to gain this information direct from HSBC now i have left.

 

Here's hoping you can help

 

Mollythe monk

[Mostyn1704]

Hi Molly

 

Have just copied this from HSBC's web page You can get there for yourself - don.t need to be a customer for access to their rates Home: personal, business, online, internet, banking: HSBC Bank UK Good luck - if you need anything more specific that you con't find on their open site let me know

 

 

The Bank Account overdraft rate is 18.3% EAR typical (subject to status). Find out more about our Overdraft Service.

[mollythemonk]

Hi thanks for that.

 

Sorry to sound think, but i need the APR and the website gives me the EAR are they the same? can i use the 18.3% quoted

 

Molly

[Mostyn1704]

Hi thanks for that.

 

Sorry to sound think, but i need the APR and the website gives me the EAR are they the same? can i use the 18.3% quoted

 

Molly

 

Hi . I used the EAR because that is what they quote on their website. They say it is a more accurate figure. So I think it's OK to use it. They will soon tell you if it is wrong ! Which spreadsheet are you using? I used Mindzai's and found it very easy.

 

Good luck

[mollythemonk]

Hi, thats great i will use the 18.3% then thanks. I also used the Mindzai, and yes found it easy to use, however i am now ready to send and am a little confused, so you may be able to help.

 

I want to claim for Contracual which i assume is the 4th and final tab on the spread sheet? Do i print the whole of this tab to send quoting in my letter only the penalty amount and compound interest amount combined? which would equal £6,027.35 (combined) and leave out the interest paid on penalties, Compound interest paid on interest and combined interest & c.interest (on the right hand side) until raising court claim. I have read the forum for about 3 weeks now, and still dont truly understand. Also i have read that you can only claim up to £5k?

 

Sorry if this sounds confusing

 

Molly

[Mostyn1704]

Hi, thats great i will use the 18.3% then thanks. I also used the Mindzai, and yes found it easy to use, however i am now ready to send and am a little confused, so you may be able to help.

 

I want to claim for Contracual which i assume is the 4th and final tab on the spread sheet? Do i print the whole of this tab to send quoting in my letter only the penalty amount and compound interest amount combined? which would equal £6,027.35 (combined) and leave out the interest paid on penalties, Compound interest paid on interest and combined interest & c.interest (on the right hand side) until raising court claim. I have read the forum for about 3 weeks now, and still dont truly understand. Also i have read that you can only claim up to £5k?

 

Sorry if this sounds confusing

 

Molly

Don't worry it took me weeks to getthings sorted in my head too! You need to print out two sheets from the spreadsheet - the first, blue "Charges and Interest" and the last, green, "C.Interest". In your letter under "What I require" heading you ask for the charges (see total on top of first column on "Charges and Interest sheet), the interest they charged you on this (see total from top of column "interst paid on penalties" on Charges and Interest Sheet) plus the interest you are claiming from them for having your money (see Total interest box from shaded area at very top of Charges and Interest sheet) Overall total should equal amount quoted in "Total Inc Interest " Box at top of Charges and Interest Sheet.

 

With regards to 5 thou limit, there is no such thing. However 5 thousand is the limit of claims that can go through the small claims court - the easier route. But there is debate about whether the £5k limit refers to the charges, or whether it includes the interest you are claiming. The court directions seem to contradict themsleves a bit. I have gone for it - my charges were £2500 + with intesrest it comes to £5000 + but when I hand papers in to court (tomorrow) I will be pointing aout the original claim is £2500, rest being interest, so it should be allocated to small claims.

 

Hope this helps - it is of course only my understanding from reading here

[mollythemonk]

Mostyn,

 

You are a star, thank you very much for that, it has really helped.

 

I will let you know how i get on. Good luck with yours.

 

Molly

[Mostyn1704]

You're welcome. Were all in this together. Good luck

[mollythemonk]

Mostyn,

 

Sorry, but just so i'm clear, i am claiming for 3 amounts from the outset

 

Penalties - paid on the account

Total Interest - paid on penalties

Total Interest - owed (in theory) from them having my money over that period

 

Giving me a total to claim of £X

 

And i am able to claim all this from the outset, as i have read numerous sections saying that certain interest can NOT be claimed until raising the court claim??

 

The prelim letter provided in the library prompts for only 2 figures then a total, where as i have 3 and then a total, do i just add an extra line in then total???

 

Sorry to be a pain, but i need to be sure..

 

Molly

[Mostyn1704]

Mostyn,

 

Sorry, but just so i'm clear, i am claiming for 3 amounts from the outset

 

Penalties - paid on the account

Total Interest - paid on penalties

Total Interest - owed (in theory) from them having my money over that period

 

Giving me a total to claim of £X

 

And i am able to claim all this from the outset, as i have read numerous sections saying that certain interest can NOT be claimed until raising the court claim??

 

The prelim letter provided in the library prompts for only 2 figures then a total, where as i have 3 and then a total, do i just add an extra line in then total???

 

Sorry to be a pain, but i need to be sure..

 

Molly

 

Hi ...sorry for delay ..just got back home..and off again shortly....

Yes you claim ALL 3 amounts in your letter to HSBC. as per the schedules you send with your letter.

I think you may be using an older draft letter, it is only recently that people have begun to claim Contractual, compound interest.Try following threads from Bankfodder, HSBCcrusher etc where you will find other draft letters, or just add the extra yourself.Also have a look at BONG vs HSBC Contractual interest 13 year claim Post 47

 

The reference to NOT claiming interest only refers to the court's 8% which you claim at point of submitting claim to the courts IF YOU HAVEN'T ALREADY CLAIMED Contractual Interest. i.e it's one or the other, but of course CI gives you more, and to many minds justifyably so since it is the interest (compounded) that they have been charging you all this time (also compunded)

At the point of submitting claim to court you can then offer alternatives...Compound interest at the current rate (18.3%)...or at lower rate for lending (am still trying to find this out) or if they do not allow either of these, then the "default" 8% court fixed rate. Just don't mention the 8% to HSBC now...that is your default position if the court does not agree with either of the others.

 

 

Hope this makes sense..am in a rush to get to work ..back here around midnight if it helps

Mostyn

[Mostyn1704]

Also of course, most don't get to court, you don't have to argue about which interest rate is most relevant, they will just settle your claim (after some hedging of course ! )

[mollythemonk]

Thanks Mostyn, here is the section adjustment i hope it makes sence, if so i will be sending tomorrow, have a quick read and let me know as soon as you can.

 

Appreciate all your help.

 

I calculate that you have taken £3,919.25 in penalties plus £295.41, which you have charged me in overdraft interest for the sum, which you have also taken. As these charges were debited from my account without my informed consent and, in my opinion, unjustly enrich the bank, I am applying interest to them at your current interest rate taken from your website of 18.3%, compounded annually. This has been applied to each charge through out the last six-years up to and including 23rd December 2005, the date on which I received your last and final charge on my account. The total owed is £6,441.78. I have enclosed a schedule of the charges, which I am claiming with this letter

 

 

Molly...

[Mostyn1704]

Look fine Molly ...and in any case you can always send them an update whislt your are waiting for the date when you file your court papers , if you find any mistakes.. Will pm you a copy of my letter when I get back from work.

Mostyn

[mollythemonk]

Thanks Mostyn,

 

Have a good day/ night at work

 

Molly

[Mostyn1704]

Hi there Molly. How is it going? First letter sent yet? I have just had an offer of £2300+ against my claim of £5k+, before I submitted court claim. Think they are trying to buy people off at earlier stage...but it wont work with me.

Let me know how things go

[mollythemonk]

Hi, Mostyn.

 

Have sent charges, and have recieved letter saying they are looking into it ????????????? 14 days is up on Monday so will be sending the second letter then. Will let you know how it goes. Keep in touch

 

Molly