Calculating 8% statutory interest.

spikiemikie

Does anyone know the formula for calculating the 8% statutory interest on a debt?


I'm starting court action against a credit card company. Between Sept 2011 and April 2015, they charged me £201.94 in interest payments.


In order to calculate my total claim against them, I need to add the 8% interest that I should be entitled to claim.


My understanding is, from PPI payments, that its 8% APR, so its per year, rather than on the overall total ?

Ebe_Scrooge

I'm not quite sure what you're asking, but 8% of £201.94 is £16.16 ( 8/100 * 201.94 )

grumbler

He is asking whether it has to be calculated on the total amount since Apr 2015 or on each partial amount independently. I think it's the latter, and for each partial amount £X it's

~£X*8%/365*(total number of days)

However, the interest on the total amount since Apr 2015 is much easier to calculate and will be just a fraction smaller.

[Deleted User]

It's 8% simple interest for PPI redress, not compound.

Is the OP really going to court over £200???

grumbler

Submitting a SCC claim isn't exactly 'going' to a court. As the amount is small, it's likely that the CC company will settle before court hearing.

spikiemikie

Thanks for your help, appreciate it...




£X*8%/365*(total number of days)


SO.. £201.94 x 8% = £16.15.5p / 365 = 0.0442p x 1293 days (30/11/11 to 15th April 2015 = £57.15. Does that seem about right?


If so, how do I work out the interest on the disputed amount 15 April 2015 to the date I make the claim ?


And yes, that's the plan.... I'd like the company to settle and pay up, I suspect they might but we'll see... The Small Claims Court isn't called that apparently now and I think they try and do without even having a hearing.

[Deleted User]

Personally I'd be happy with the £201

pvt

SO.. £201.94 x 8% = £16.15.5p / 365 = 0.0442p x 1293 days (30/11/11 to 15th April 2015 = £57.15. Does that seem about right?



If you're saying they charged you £201 on 30/11/11 and gave it you back on 15/04/15 then that is correct.

If they charged you small amounts over that 42 months that totalled £201 at the end, then no, it's wrong.