Interest...

Sinope_2

Sorry guys - i am just compliling the letter and have added statatory interest (after much deliberation) - just to clarify, is this 8% starting from the date each charge was taken?

Sinope_2

Also, i used the calculator to total it up but have added it on the sheet next to each charge, is that right do you think?

skintscouser

Sinope wrote:

Sorry guys - i am just compliling the letter and have added statatory interest (after much deliberation) - just to clarify, is this 8% starting from the date each charge was taken?

not sure where this will end up on the forum... but this is a quote cut from the guide on interest - ''
Charge interest on top If you won via the courts, you would be entitled to add 8% interest (not compounded) on top from the date you were ‘first deprived’ of the money (i.e. the date of each charge). ....''

Rex_Mundi

Sinope wrote:

Also, i used the calculator to total it up but have added it on the sheet next to each charge, is that right do you think?

It's fine to do that (it clarifies what each charge is).

If your bank makes an offer of the charges only (without interest) before you issue a court claim. You MUST accept the offer. This is all you are entitled to up untill you go to court.

The interest is a court thing. If you issue a county court claim, you are allowed to add interest on the debt at 8%. This is covered by s69 County Courts Act.

owenp

Rex_Mundi wrote:

It's fine to do that (it clarifies what each charge is).

If your bank makes an offer of the charges only (without interest) before you issue a court claim. You MUST accept the offer. This is all you are entitled to up untill you go to court.

The interest is a court thing. If you issue a county court claim, you are allowed to add interest on the debt at 8%. This is covered by s69 County Courts Act.

Sorry Rex, I really don't mean to doubt you but is this really right?

I thought you could use the interest as a bargaining tool before court proceedings are issued. Repay the charges and I'll drop the interest.

If we must accept charges only, up to the court claim, then we can't bargain with the interest.

I'm about to issue my second letter threatening court action and I've re-calculated the interest which is higher now than it was when I sent the first letter. Am I wrong to do this?

Edinburghlass_2

Have a listen to Martin's "musings" about adding the interest as sometimes you can read too much and he explains his thoughts in the audio file.

You may get lucky and get the interest on top, but even if not, the legal feedback I've had is that it’s one route to pushing the bank to settle quickly so it can offer to pay you without the interest. Of course there is a risk that asking for too much makes them less likely to settle too - sadly this is an art not a science. This isn't an easy concept so I've recorded a quick audio file which may help explain it.

Rex_Mundi

owenp wrote:

I thought you could use the interest as a bargaining tool before court proceedings are issued. Repay the charges and I'll drop the interest.

The interest is nothing to do with reclaiming bank charges. It is allowed to be added to county court claims (s69 County Courts Act). Until you issue a court claim, you are not entitled to claim this interest.

Martin suggests that because so many claims go to court, it may be worth adding this from the beginning, and possibly used as a bargaining chip. Up until you issue your court claim, you really have no right to this interest.

The advice I posted above is 100% correct.

owenp

Thanks for that guys.

That's an important point I was missing. All clear now

owenp

Just thought of something else!!

If I issue a county court claim and the bank offers to repay the charges before the hearing, what is the position with interest then?

Thanks again

Rex_Mundi

If the bank settles before you go to court. They don't have to pay the interest. If you have issued a court claim, they should pay the charges+interest+court fee.

owenp

Rex you're a star!

Thanks again