Has anyone reclaimed the interest they have been charged on the charges?

ccmug

I'm planning to do this, If the charge is unlawful then to my mind then so is the charging of interest on it. In most cases the interest element adds an additional 50% to the claim. Then I'm going for stautory interest on both the penalty charge a nd the interest charged on it.
Does anyone see anything wrong in doing this?</p>

Orford

I'm planning to do this, If the charge is unlawful then to my mind then so is the charging of interest on it.

There's nothing to stop you doing this, except that you can only claim the interest they have charged on the penalties,but not the interest charged on general overdraft. Working this out, even approximately, let alone accurately, can be very complex and unless your claim is largely made up of charges from 5-6 years ago, doesn't make an enormous difference, which is why most people don't bother.

In most cases the interest element adds an additional 50% to the claim.

In which case, it's likely that your calculations are wrong. How have you worked this out?

ccmug

Orford wrote: »

In which case, it's likely that your calculations are wrong. How have you worked this out?

I've used a spreadsheet from the CAG site which I have modified slightly for where i have all the staements and in a fairly major way where I only have a list of the charges

Where I have all the statements i have entered all the details for every month of the six years regardless of whether there was a penalty or not (the accounts have all been heavily in debit throughout the time) so i have interest charged, opening and closing balance spend and payments. The spreadsheet calculates for each month the proportion of the interest charge that is attributable to the accumulated penalty charge to date.

Where i dont have the statements I have averaged the Interest charge of 6 years ago which I do have, and that charged today and applied that to the accumulated penalty charge each month of the 6 years
I intend to state in my letter that I am including an estimate of the interest charged in this respect as i do not have access to their interest charing algorithm and will invite them to provide an accurate and justified alternative if they disagree

natweststaffmember

ccmug wrote: »

I've used a spreadsheet from the CAG site which I have modified slightly for where i have all the staements and in a fairly major way where I only have a list of the charges

Where I have all the statements i have entered all the details for every month of the six years regardless of whether there was a penalty or not (the accounts have all been heavily in debit throughout the time) so i have interest charged, opening and closing balance spend and payments. The spreadsheet calculates for each month the proportion of the interest charge that is attributable to the accumulated penalty charge to date.

Where i dont have the statements I have averaged the Interest charge of 6 years ago which I do have, and that charged today and applied that to the accumulated penalty charge each month of the 6 years
I intend to state in my letter that I am including an estimate of the interest charged in this respect as i do not have access to their interest charing algorithm and will invite them to provide an accurate and justified alternative if they disagree

Never estimate anything. If you can't work out the interest then stick to 8%. If you have used CAG make sure you are referring to Unfair charges otherwise you may well have a problem with your claim unless its a credit card claim(I assume its not due to the interest issues that you are having).
Penalty charges argument has gone. I have spoken to site team on CAG with regards to this a few weeks ago however am under moderation over there so can't really continue those discussions as I don't do email with them. (yourbank over on that forum btw).
My personal opinion is the KISS principal, Keep It Simple Stupid. Reason is that you have to expect it to go to a court and if you do then you have to explain how you reached your figures. 8% is sooo much simpler.

ccmug

natweststaffmember wrote: »

Never estimate anything. If you can't work out the interest then stick to 8%. If you have used CAG make sure you are referring to Unfair charges otherwise you may well have a problem with your claim unless its a credit card claim(I assume its not due to the interest issues that you are having).
Penalty charges argument has gone. I have spoken to site team on CAG with regards to this a few weeks ago however am under moderation over there so can't really continue those discussions as I don't do email with them. (yourbank over on that forum btw).
My personal opinion is the KISS principal, Keep It Simple Stupid. Reason is that you have to expect it to go to a court and if you do then you have to explain how you reached your figures. 8% is sooo much simpler.

These are credit card claims!This is about claiming back the interest that they have charged me on the unlawful/penalty charges. If you agree that the charge is unlawful then surely so is the interest that they have subsequently charged me on those charges. The statutory 8% is a different issue. This is allowed by the courts in any financial claim, for example if I as a tradesman sue a customer for non payment and win then i can charge 8% pa on the claim

natweststaffmember

ccmug wrote: »

These are credit card claims!This is about claiming back the interest that they have charged me on the unlawful/penalty charges. If you agree that the charge is unlawful then surely so is the interest that they have subsequently charged me on those charges. The statutory 8% is a different issue. This is allowed by the courts in any financial claim, for example if I as a tradesman sue a customer for non payment and win then i can charge 8% pa on the claim

In that case then, I know that Budgie on the Legal beagles forum did claim back credit card charges and statutory interest and won. You can claim statutory interest on the charges but don;t estimate your claim.