Claiming interest on refunds

_pauls

Long story short - due to an (acknowledged) error on the part of Nationwide, we have been paying for someone else's insurance policy on top of our own since 2001.

They initially offered to repay the £2,320 that we'd paid out but no interest or compensation, on the basis that the money was coming out of an account we held with them which paid no interest on balances.

They have since come back to me after I queried this and upped their offer to £2,500

I'm pleased that they came back with an improved offer but suspect that the extra £180 is probably shy of what I could expect, given that I paid money from another account into the one that paid the insurance charge and over the course of the last 12 years I have been paying overdraft interest on that account for some time, not to mention the occasional fee for going overdrawn.

Any thoughts on what is reasonable to expect?

magpiecottage

FOS would do one of five things:

Side with Nationwide

Insist they pay 8% simple interest

Insist they pay a rate linked to bank base rate compounded annually

Insist they pay the average deposit rate from banks/building societies

Insist they pay interest based on their own savings rates.

Which they will do depends on their current whims.