Success!!!...but no 8% (MBNA A&L)

jwturpin

After one month waiting, I had a phone call today asking me to clarify the situation surrounding the original application.

I was told that as A&L were not owned by MBNA at the time of application (2003), they had no way really of investigating further and offered me full refund of £636.

What they didn't offer was the 8% statutory interest, even though I pushed hard for it. Some rubbish about this only applies if refund of payment would have put me in credit on my card!?! I ask you, who goes into credit on a credit card?!

They are putting the cheque in th post outlining also in a letter why 8% interest could not be offered. Is it worth following up, it would only get an additional £50 or so.?

PaulinWeston

Write back straight away (Recorded Delivery) Saying that you accept the cheque as part payment but that there is still a dispute between you.

Then request again the interest, pointing out that it is just and equitable that you are awarded interest because you have been unlawfully denied use of the money.

You could also point out that if you are obliged to revert to a claim in the county court, you will ask the court to consider applying a rate equivalent to the APR on the Card (which will no doubt be much higher than the statutory 8%), arguing that the premiums paid (which they have now returned to you)would have otherwise been used to pay off the loan/credit card.

jwturpin

Well, i tried that one, but he said that they were refunding all premiums paid, PLUS the interest. The interest only worked out at £30 though, which for £600 of premiums doesn't seem an awful lot to me. Agreed, it's not interest on a lump sum of 600, but cumulaltive over 6 years, but nevertheless, still not much.

I tried to explain to him several times that had the money not been on the card in the first place due to the mis-selling, I would have had had it in my bank account, or evenin a saving account, and hence, I have missed out on interest.
Now no bank I know of gives 8% interest, so I'm guessing the 8% figure is partly refunding the interest youwould have gained, plus additional for compensation for being denied the ability to spend it?

Either way, they are including a breakdown of the telephone conversation with the cheque, but whilst I await its delivery, anyone care to shed light on where/why the 8% figure comes in, and why I deserve it? I mean, I got all my premiums back, so should I really be pushing for more???

marshallka

jwturpin wrote: »

Well, i tried that one, but he said that they were refunding all premiums paid, PLUS the interest. The interest only worked out at £30 though, which for £600 of premiums doesn't seem an awful lot to me. Agreed, it's not interest on a lump sum of 600, but cumulaltive over 6 years, but nevertheless, still not much.

I tried to explain to him several times that had the money not been on the card in the first place due to the mis-selling, I would have had had it in my bank account, or evenin a saving account, and hence, I have missed out on interest.
Now no bank I know of gives 8% interest, so I'm guessing the 8% figure is partly refunding the interest youwould have gained, plus additional for compensation for being denied the ability to spend it?

Either way, they are including a breakdown of the telephone conversation with the cheque, but whilst I await its delivery, anyone care to shed light on where/why the 8% figure comes in, and why I deserve it? I mean, I got all my premiums back, so should I really be pushing for more???

If you won with FOS for misselling you would receive back all the PPI you have paid with interest etc (if a loan PPI) and then you would awarded 8% statutory interest on top of that figure from the date you were actually deprived of the monies until they actually pay out. This is like what a court would award if you won. I would try again for it and mention FOS perhaps.