Section 75 refund - Interest refund?

babygrace

A bit of advice needed on a Section 75 refund - My training provider went into liquidation in July 2013, the total cost of the course was £7100 & I paid part of the course on my credit card (£2950).
My card provider was very quick in agreeing to refund the total amount of £7100 which of course I am over the moon about ..... However, they have also refunded the Interest which they have calculated at just over £200
I know I have been 'naughty' and just paid the minimum card repayments each month (Since January 2012) and at 29% APR I'm pretty sure I have paid more than £200 in interest - Have they made a fair offer or should I be getting back in touch asking for a recalculation?

dotdash79

When did you pay the course?

The interest you should have refunded is for the part of the money you acutely paid with the card.

babygrace

I paid for the course in February 2012, the training provider when into liquidation in July 2013

£2950 of the course was paid on the card & the interest refund has been calculated at £279.69 (minus 20% tax deduction) coming in at £223.75

dotdash79

Have you got access to any old statements?

it's seems a bit low but you have to think you have been paying down the debt even if you just paid the minimum each month.

chanz4

Op they lost how much

chattychappy

Interest amount doesn't really fit. Did they say on what basis they were refunding the interest? Perhaps they were basing it on the statutory rate (ie what a court would award following a breach of contract) rather than what you were actually charged on the card.

pjread

deducting 20% tax smells of interest on the cash paid to you rather than refund of the high-APR interest you paid them. I'd just calculate it and drop them a letter showing what you paid them in respect of it, and requesting a refund of that value.

A reimbursement of invalidly charged interest would not be subject to income tax.