advantage premier - interest query

[kate64]

Hi

 

I am starting a claim for my sister who is not well and can't do it herself.

 

She has a Advantage Premier Account that has and overdraft facility of we think £10K and sometimes £13K. We think these limits are right because at the end of the statements is says:

 

"your interest rate for borrowing £10,000 on this account is 8.99% your interest for borrowing above this level is 22.5% PA".

 

These amounts change over time. My sister did go over these limits and so did have "paid referral" and "unarranged borrow fee" charges. As she had interest charged every month and some of it is at the higher rate, how do we work out what if any we can claim?

[Guest NATTIE]

The two charges in red that you quote she can claim. The interest bit i will leave for more experienced members who will be able to advise.

[kate64]

Hi, thanks for this, we thought we could claim these charges. It is the interest that has us stuck.:-|

[steven4064]

I think you are going to have to split your list of charges into two, one where the total overdarft is

 

Steven

[kate64]

Hi, not really sure how I would do this, the interest charge was done monthly and only for maybe a few days in some cases was the overdraft over the £10k, so part of the interest would be the standard 8.99%. Is there a way to split this or a formula I could follow?

 

Thanks

[steven4064]

If it realy was only a few days each time then the total is prohbably quite small. You could just claim 8.99% on everything. You would lose a bit but it sounds like it would only be a few pounds as 22.5% APR works out at 55p/day on a loan of £10k, whereas 8.99% is 23p/day on £10k. Therefore, for each day you were over £10k you are probably going to lose 22p on your interest claim by just going with 8.99% on everything.

 

Steven