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Confusion about interest as aspect of claim


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Hi, about to draft LBA to NatWest, but unsure about interest portion of claim.


1.I've read through the FAQ's and forums on interest but would like to be clear on the issue before I fire my broadside at NatWest.


2.I've been through DPA process and have all relevant statements.


3.I had a Current Plus Account.


4.I had an agreed overdraft limit of £1000 -£1600 as credit zone (over relevant period of unfair charges. Interest rate = 16.99%.


5. After I lost my job and hit £1600 limit on overdraft, the sole extent of "withdrawal" made from my account were for referral fees charged for SO’s, DD’s, default notices, something listed simply as "Charges" (between £14 and £25 per month so seems different to usual charges) and interest on the entire amount. Of course the more charges and interest the higher the debt. This quickly became £5000 plus change. I reached a deal with them to settle all debts 3 years ago.


6.My questions are -


A. Am I right in approaching this in terms of calculating the difference in interest between the 16.99% due on the £1600 max of my overdraft and the actual amount of interest (29.99%) deducted for the accumulation of the unfair charges.


B.I was going to simply calculate 16.99% X interest due on £1600 and deduct the rest giving me my value to add on to what I am claiming back.


C. Is this too simplistic? Can anyone advise?


D. Does anyone have an inkling about what the "Charges" were for at 5 above, before I potentially cock up my claim by claiming for something that I shouldn't. Is it possible that it would be for an unarranged borrowing fee. If so, then if this fee an adjunct to unfairly applied charges then I suppose that I should retrace the statements and see where the "Charge" is attributable to unfair bank charges.


E. My final thought was that if Nat West allowed a DD or SO to take me over the final overdraft limit (when my income ceased) then I suppose that they could argue that this had made all borrowing over £1600 unauthorised so the “Charge” should apply for the whole period until I reached settlement. Anyone experienced anything similar?


Any answers advice will be most gratefully received. I am in a position to trade knowledge in matters concerned with Employment Law, but I cannot, due to restrictions with my contract of employment provide “advice,” (as “advice” is defined by the Law Society).

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Your appraoch is too simplistic. You need to put your charges in one of the spreadsheets in the templates library (or in Vampiress's chambers - linked via the same route).


NatWest's charges have varied (ie increased) over the years. Individual charges of £14, £25 and now £38 are common. You can reclaim them all, especiall unarranged borrowing fees - the only thing you cannot claim are advantage gold fees and of course legitimate bank charges on a business account (eg 38p for a direct debit payment via BACS) - these are listed on your statements (if it is a business account - which I have assumed in the basis you had to pay VAT!)



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