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I've overpaid loan interest and now the bank won't pay me
Please can someone advise.
Some time ago I had a business mortgage for a commercial property with a tenant. To cut a long story short the tenant went bust and I was unable to find another one. It was agreed with the bank that interest could be rolled up until the building was sold.
When it finally was sold, the settlement figure required by the bank was much larger than I expected, but I was just glad to be rid of the problem.
Two years later the bank writes to me to tell me I have overpaid the interest to the tune of £32,000. Due to the fact they got the name wrong on the cheque I had to return it and two months later I am still waiting. I did write to them and suggest that in view of the time and the amount they also owed me interest on the balance they had held for all this time, they wrote back and said that 'we feel there is no further monies due'.
My questions are these:
1. surely they do owe interest on money they have held as a result of their mistake
2. If so, what rate of interest should be used - because the settlement was much larger than expected I had credit card debts which I was unable to clear - say an interest rate of 16%. Alternatively the mortgage rate I had been paying was about 7%. The court rate is 8% and if I had been able to save the money it would have earned around 5%.
3. Should I wait until I have recieved the £32,000 before pursuing the matter of interest - the reason being if I take the matter to court I would have to pay fees for a much larger amount of money - £32k plus interest which takes it out of the small claims court - a lot more money to find up front.
4. Should I just refer the matter to the Banking Omnbudsman?
Many thanks in advance for all help
CJ
Some time ago I had a business mortgage for a commercial property with a tenant. To cut a long story short the tenant went bust and I was unable to find another one. It was agreed with the bank that interest could be rolled up until the building was sold.
When it finally was sold, the settlement figure required by the bank was much larger than I expected, but I was just glad to be rid of the problem.
Two years later the bank writes to me to tell me I have overpaid the interest to the tune of £32,000. Due to the fact they got the name wrong on the cheque I had to return it and two months later I am still waiting. I did write to them and suggest that in view of the time and the amount they also owed me interest on the balance they had held for all this time, they wrote back and said that 'we feel there is no further monies due'.
My questions are these:
1. surely they do owe interest on money they have held as a result of their mistake
2. If so, what rate of interest should be used - because the settlement was much larger than expected I had credit card debts which I was unable to clear - say an interest rate of 16%. Alternatively the mortgage rate I had been paying was about 7%. The court rate is 8% and if I had been able to save the money it would have earned around 5%.
3. Should I wait until I have recieved the £32,000 before pursuing the matter of interest - the reason being if I take the matter to court I would have to pay fees for a much larger amount of money - £32k plus interest which takes it out of the small claims court - a lot more money to find up front.
4. Should I just refer the matter to the Banking Omnbudsman?
Many thanks in advance for all help
CJ
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