interest calculations

redhouse53

hi, I'm just about to issue court proceedings against hsbc, as they have ignored my previous letters. So far I havn't asked for interest to be added, but know I have too, so, do I calculate interest on the whole amount (£1025) or do I work it out on each charge individually, (cause theres a lot of them and it will take ages!)

many thanks

Rex_Mundi

Enter each charge into the calculator along with the date. This will work out the interest. You have to do it this way because the charges would be spread out over years (a £30 charge from 2002 will incur more interest than a £30 charge from 2006). Adding 8% interest to the whole amount in one go wont give an accurate figure (what date would you enter?)

redhouse53

thanks for your reply, that's what I thought, just seemed like loads of work which I didn't want to do if it was wrong!

bob_rebbeck

I am already fighting with my bank, (Lloyds TSB), business and personal, I have just threatened court action and they do not seem to be bothered, using the words "another one jumping on the bandwagon".
my question is not about the charges as i have worked all of that out, but how do you calculate the amount of interest they have charged over the years, are the courts going to say that they are a business and are entitled to some interest?
Do you work out the amount of interest charged and times that by 8%, minus off that figure as fair, then reclaim the remainder?
Do you not reclaim the interest charged, but then charge the Courts charge on the amount they owed you from the overcharging then apply the Courts rate at 0.0022% per day,from the day the amount of money was taken from your account?
Sorry, this is a sticky one, but we all need to know the correct way to do this as one day very shortly the banks will defend.
Bob.

Edinburghlass_2

If you use Martin's Interest Calculator it works out the interest for you, link below for the calculator.

Step-by-step Guides: Bank Charges: Reclaim Your Cash | Top New Bank Account Calculator: Charge them interest Template Letters: (right click and save) Ask for charge details |Initial letter | Second letter | Small claims note Get Updates On Important Changes: Free Weekly Money Tip


Also have a read of this post by Rex regarding claiming the interest.

http://forums.moneysavingexpert.com/showpost.html?p=4285857&postcount=9

car1268

Sorry I know this is a stupid question, but can anyone explain the 8% interest that can be added on to bank charges. I am currently claiming on behalf of my son with Barclaycard. He has £144 of charges, now is the 8% per year or on the total??
Also in process of retrieving statements from 4 credit cards but will hopefully post these on 'success stories' at a later date.

Rex_Mundi

car1268 wrote:

Sorry I know this is a stupid question, but can anyone explain the 8% interest that can be added on to bank charges. I am currently claiming on behalf of my son with Barclaycard. He has £144 of charges, now is the 8% per year or on the total??
Also in process of retrieving statements from 4 credit cards but will hopefully post these on 'success stories' at a later date.

Put each charge, and the date of the charge into the calculator in Martins article. It will tell you the interest.

larks01

When claiming interest at the point of Issueing court proceedings, is it correct to add interest to each individual charge from the date it happend untill the present date OR.

add interest on to the whole amount of the claim from the first date of charge ....???

Paddy_O'Moron

See my post about using Excel (if you have it) to do the hard work for you!

Good luck, mail me if you get into trouble!

Paddy

Gregm

larks01 wrote:

When claiming interest at the point of Issueing court proceedings, is it correct to add interest to each individual charge from the date it happend untill the present date OR.

add interest on to the whole amount of the claim from the first date of charge ....???

Use the calculator in <a href="http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632,">this article</a> entering each charge and the date of the charge. I did this and total interest worked out to about 25% of the total bank charges being claimed so is worth doing.

barrettandy

Can someone help or advise me on the next course of action?
I made a slight boo boo with my second letter I sent to NatWest reclaiming my bank charges back.
I added the 8% Interest on the whole amount instead of the individual charges I was charged. What should I do.. just wait for a reply or send a new one with the correct Interest added?

Cheers

Andy