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Interest on refund?
Dirk_Gently_2
Posts: 281 Forumite
Apologies if this isn't in the most appropriate forum. Mods, please move it if there's a better place for it!
Basically, I've managed to obtain a refund for an over-payment on a loan which was paid off in March 2008. This consists of two parts - a sum equal to the month's repayment and a a sum for interest - calculated by the company making the payment..
I want to validate the figure that's been given for interest, as it seems low to me - does anyone know of an "industry standard" or "accepted" method/formula for calculating interest in such cases, and/or where I can find the appropriate interest rates to use for the past 60 months?
Basically, I've managed to obtain a refund for an over-payment on a loan which was paid off in March 2008. This consists of two parts - a sum equal to the month's repayment and a a sum for interest - calculated by the company making the payment..
I want to validate the figure that's been given for interest, as it seems low to me - does anyone know of an "industry standard" or "accepted" method/formula for calculating interest in such cases, and/or where I can find the appropriate interest rates to use for the past 60 months?
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Comments
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The interest on such errors is, of course, variable because not every loan is charged at the same percentage. You should receive back everything extra you paid plus the interest.
Aren't the Bank also paying you some form of extra recompense?0 -
They've paid a sum in interest which is under 5% of the refund amount.
It just disturbs me that they've come to this calculation themselves and I want to sanity-check their figures - and if necessary contest them.
So it's not how much interest I would have been charged if I'd owed this (that would be phenomenal!) but how much I can reasonably expect to get back for that period. I don't think that the loan interest rate applies because this was an over-payment , but I'm looking for advice on what the rate should be that I use.
Sadly no extra recompense - I'm not sure under the circumstances of this case I could justify it, but I do think I have a case for under-payment of interest, which is why I'm looking for some figures to base this on.0 -
it's your PPI plus the associated interst [if it's a loan] plus 8% simple interest per year.Non me fac calcitrare tuum culi0
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serves me right for not reading properly.
I didn't think there was an industry standard for that, but I could be wrong. You could ask the FOS or the FSANon me fac calcitrare tuum culi0
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