Court Claim against Aria.co.uk. How do I calculate interest?

ArsenalFC

Ok I'm in the process of putting in a claim against Aria.co.uk using the online service https://www.moneyclaim.gov.uk

They owed me £97.17 for products which they did not delivered from last year 21st June 05. It has taken me this long to put in a claim because I was trying to chase them for it and also waited for assistant from Mastercard and also needed to know more about this online claim process.

Date of purchase is 21st June 2005 and I want to put the claim in sometime next week, say 15 March 2006. Anyone know how to calculate the interest?

The following are taken from the online site: (I have added the dates)

Do you want to reserve the right to claim interest?
Since you have indicated that you wish to claim interest on the money the defendant owes you, you must include the following text in the particulars of your claim:

The claimant claims interest under section 69 of the County Courts Act 1984 at the rate of 8% a year from 21/06/05 to 15/03/06 of £ {put the amount} and also interest at the same rate up to the date of judgment or earlier payment at a daily rate of {enter the daily rate of interest}.

molotov_3

Take the £97.17 times it by 8% and then divide by 365 which will give you a daily figure ("x").

Then work out how many days the amount has been outstanding, to the date you put the claim in, and times the number of days by the daily rate (x).

This will give you the amount of interest up until you issue the claim, which you want paid, then you add that you are claiming interest at the daily rate (x) from the date you issue the claim to the date of judgment.

So you lay it out like this:

Amount claiming £97.17
Interest up to issue (15 March 2006) __ (daily rate times number of days)
Interest at a continuing rate ___ (daily rate figure)
TOTAL ______

Hope this helps!

highguyuk

Woah, hang on a minute.

Surely you can claim interest on the interest? Meaning it is more complicated than molotov's post but you would get more money...?

Alfie_E

highguyuk wrote:

Surely you can claim interest on the interest?

No. The County Courts Act was passed into law by politicians. Politicians don’t do maths. Simple interest was as complicated as they could cope with. To be a little fairer, I think it’s simple interest, rather than compound interest, to make it easier for everyone, including the claimant. And, of course, for any period of time less than a year, 8% per year simple interest is more favourable than 8% AER compound interest.

highguyuk

Rightyho, I stand corrected! :-D