Claiming bank charges – urgent question

cathybird

Hi there all, hoping someone can clear up my confusion. I'm just sorting out a claim to Barclays for £320 in unauthorised overdraft charges which they levied on my bank account between October 2002 and September 2003. I understand that I can charge them 8% interest on this amount, and the spreadsheet I've used from Consumer Action Group has calculated this at £89.94. But what's this 8% rate relate to? Because on the form letter I've got it says "I calculate that you have taken £XXX plus £XXX which you have charged me in overdraft interest for the sum which you have taken." The thing is, they won't have charged me £89 in overdraft interest because I closed the account in September 2003. Is the 8% to cover the overdraft interest they will have charged me?... does anyone know?

shaun1977

Hi, the 8% interest you are refering to is what is applied when filing your claim in court, hence it is called court interest. this is above an beyond any other claim amounts.
hope this helps

welshgirl78

Hi, um am also a little confused but will try to help!

It sounds to me like you are sending your prelim/LBA letters in which case you CAN'T claim the 8% interest. On the spreadsheet on one page it works out normal interest - you can charge this from the beginning.
However on the next sheet it calculates 8% interest DON'T CHARGE THIS until you get to the taking them to court stage.

I am pretty sure it is irrelevent whether your account has been open or closed though - the interest is based on the theoretical extra cash you would have had if they hadn't charged you in the first place.

Hope that makes it a little clearer - will try and answer any other questions.

Am in the process of taking Halifax to court - is very exciting!! (and a little scary!)

Good luck!

meerustar

I agree with Welshgirl ... please dont add the 8% until you reach court (if it goes that far)

For now you are claiming back your charges and the interest on those charges. If you got your statements back then, for example, you will see they charged you, say £30 for going overdrawn and say £2 interest, so add up all your charges and then add up all your interest and thats where you fill them in on the letter.

If you try to claim the 8% now or even mention it, they'll know you dont know what you're doing and probably let you go to the court stage. There are a lot of people scared of court and they know some wont go that far.

Good Luck with the claim!

Dr.Shoe_2

I'm not so sure whether you can claim back all the interest your bank charged you. They should be allowed to charge you interest for an authorised overdraft in the same manner they would expect to charge you interest for a loan. The only interest you can claim back is the interest you paid on the money they robbed off you.

cathybird

I've just looked at the spreadsheets on the Consumer Action Group website again and there are two versions - a simple one (which calculates 8% interest, and everyone who has replied to me so far is correct, I can only ask for this when it gets to court) and an advanced one, which calculates the ordinary overdraft interest charged by banks and which I can request back at the preliminary stage. Guess which one Dumbo has been using!!! (slaps forehead). Sorry everyone, just misreading how it works. None of the spreadsheets function on my home computer at all so the whole question will now have to wait till I'm back at work on Tuesday anyway.:mad: :mad: Apologies for asking daft questions and thanks to everyone who replied! Most impressed that you all knew the right answer!!!!! :T

shaun1977

try open office openoffice.org if you are wanting a programme for the spreadsheet, its a free office suite similiar to microsoft office.

pressed thank you by mistake

lightatendoftunnel?

If you go to consumer action group site and look on the bank section in general there is a section about claiming contractual interest. I found if all very confusing so took the easy way and claimed the 8% when i put in the money claim. I just deleted the sentences with claiming interest in the prelim/LBA letters.
We have won two now, second one today!!!!!!!!
We have won just £5000 back and it feels really good!

cathybird

what, really? you claimed the 8% up front and they gave it to you??
that's interesting!

lightatendoftunnel?

Yes once its on the money claim they pay the 8% no bother. In one claim the 8% interest was £73 and in the other claim it was £800 we got both back no problems!

savvykaz

Hi lightatend.....- which bank have you had success with? I'm nearly at the stage of taking Nat West to court - VERY nervous!