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  • FIRST POST
    • scoobyandy
    • By scoobyandy 13th Jul 17, 2:51 PM
    • 12Posts
    • 3Thanks
    scoobyandy
    Subsequent refund by Mortgage company - interest
    • #1
    • 13th Jul 17, 2:51 PM
    Subsequent refund by Mortgage company - interest 13th Jul 17 at 2:51 PM
    Good afternoon,
    We completed on a house move in October 2016. My Solicitors have just contacted me to say that upon checking their file to close it, they "noted they have received a refund for an early payment charge in respect of our mortgage...to the sum of £1071.54"
    Great - i'm happy with that but i'm not happy that it is now 9 months later when this comes to light. I have asked exactly when this refund was forthcoming to them from my old mortgage lender. Is it reasonable to expect my Solicitor to pay me interest on it if it has indeed been sat in their account for a while and if so, at what rate? 8%?
    Thanks in advance, Andy
Page 1
    • nomoneytoday
    • By nomoneytoday 13th Jul 17, 3:47 PM
    • 4,725 Posts
    • 2,852 Thanks
    nomoneytoday
    • #2
    • 13th Jul 17, 3:47 PM
    • #2
    • 13th Jul 17, 3:47 PM
    Credit interest on the client account is probably zero..
    • Doozergirl
    • By Doozergirl 13th Jul 17, 4:19 PM
    • 24,053 Posts
    • 66,667 Thanks
    Doozergirl
    • #3
    • 13th Jul 17, 4:19 PM
    • #3
    • 13th Jul 17, 4:19 PM
    Who pays/gets 8% interest now?
    Everything that is supposed to be in heaven is already here on earth.
    • Silver Queen
    • By Silver Queen 13th Jul 17, 4:22 PM
    • 165 Posts
    • 1,002 Thanks
    Silver Queen
    • #4
    • 13th Jul 17, 4:22 PM
    • #4
    • 13th Jul 17, 4:22 PM
    You can, but money held in client account is probably 0.

    What does your client care letter from them say?

    Read this.

    https://www.sra.org.uk/solicitors/handbook/accountsrules/part5/rule22/content.page
    Debt Totals November 17:
    £350 Natwest Credit Card / Now £0 £15,500 Loan from Parents 1 / Now £12,500 £500 Loan from Parents 2 / £500 £2,000 Overdraft Now £1,700
    • NelliePie
    • By NelliePie 13th Jul 17, 4:25 PM
    • 94 Posts
    • 304 Thanks
    NelliePie
    • #5
    • 13th Jul 17, 4:25 PM
    • #5
    • 13th Jul 17, 4:25 PM
    Honestly take the money and be happy with it. You hadn't noticed/claimed it before so don't be greedy and charge interest. It might be worth a quick complaint to see if they'll throw in a 'good faith' compensation of £50 or something but expecting 8% is beyond unreasonable... can you find any accounts where you can get that, let alone in 9 months
    When life gives you lemons, find the tequila!
    MFW: FTB June 2017 £144k. Target 128k June 2019
    • cjdavies
    • By cjdavies 13th Jul 17, 4:49 PM
    • 2,844 Posts
    • 2,874 Thanks
    cjdavies
    • #6
    • 13th Jul 17, 4:49 PM
    • #6
    • 13th Jul 17, 4:49 PM
    Where did you get 8% from?

    Let me know so I can transfer my ISA
    • G_M
    • By G_M 13th Jul 17, 4:55 PM
    • 42,280 Posts
    • 49,123 Thanks
    G_M
    • #7
    • 13th Jul 17, 4:55 PM
    • #7
    • 13th Jul 17, 4:55 PM
    Is it reasonable to expect my Solicitor to pay me interest on it if it has indeed been sat in their account for a while and if so, at what rate? 8%?
    Originally posted by scoobyandy
    : rotfl:

    You are either not based in the UK, or you are not based in 2017.

    (and solicitors' clint accounts rarely pay interest anyway.)
    • scoobyandy
    • By scoobyandy 14th Jul 17, 10:18 AM
    • 12 Posts
    • 3 Thanks
    scoobyandy
    • #8
    • 14th Jul 17, 10:18 AM
    • #8
    • 14th Jul 17, 10:18 AM
    I'd done a quick google and inadvertently got to a page for "Late commercial payments charging interest and debt recovery" - which stated 8% but that was business to business debt!
    (https://www.gov.uk/late-commercial-payments-interest-debt-recovery/charging-interest-commercial-debt)

    Yeah, i'm taking the cash. They have replied saying the interest is £0.44 so i'll take it.

    It's a good bonus considering we weren't expecting it. Still a bit rich of them to sit on it for 8 months but it's unexpected to us so happy days.
    I was originally thinking about the interest angle - harking back to the days when i did my own claims for PPI and bank charges - when claims first came to light in forums such as these. I distinctly remembering working out interest on those and wasn't sure if it would similarly apply to money held by a solicitor such as this even though it's not a debt as such.

    Thanks for your replies :-) Happy Friday
    • G_M
    • By G_M 14th Jul 17, 12:18 PM
    • 42,280 Posts
    • 49,123 Thanks
    G_M
    • #9
    • 14th Jul 17, 12:18 PM
    • #9
    • 14th Jul 17, 12:18 PM
    I doubt they deliberately 'sat on it'. They would have been unaware it was in their account till they did an audit.

    0.44 is actualy quite a good rate.

    Not good compared to 8%, but good for a business account in 2017.
    • saajan_12
    • By saajan_12 14th Jul 17, 3:00 PM
    • 996 Posts
    • 672 Thanks
    saajan_12
    The point is really
    1) should the solicitors have paid the money earlier
    2) what has the OP lost as a result of being paid the money 8 months late

    1- there's no time limit so when is reasonable? what was outlined in the T&Cs? If the OP should have received it earlier, then go to No. 2:
    2- OP has lost the interest in a standard bank account that THEY would have used, the solicitor's client account is irrelevant as the money should have been in OP's account. Interest rate would have been 0.5% p.a. say?

    Thats 0.5% * 8/12 months * £1071.54 = £3.07
    • eddddy
    • By eddddy 14th Jul 17, 3:25 PM
    • 5,543 Posts
    • 5,228 Thanks
    eddddy
    Solicitors' client accounts seem to pay between 0.2% and 0.4% per year. See: https://moneyfacts.co.uk/business/client-account/

    SRA guidelines suggest that the solicitor should pay you interest on money held in a client account.

    But the guidelines also suggest that it's OK for the solicitor to set a cut off point (de minimis) of say £20. If the interest is less than that, it doesn't have to be paid.

    See: https://www.sra.org.uk/solicitors/handbook/accountsrules/part5/rule22/content.page
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