Interest after successful section 75

dc240969

How can they charge interest on a sum that was recovered. Even if they could the amount charged wouldnt be a full years worth, which if the interest based at 35% on £700 would be £270 over a year, not 7 months.

dc240969

bumpy bumpy

dc240969

Is there anyone that actually knows about S75 that can help. The credit card company are adament that l am liable for this interest.

eskbanker

My understanding is that you should be able to add the resulting interest to the price of the goods when making a s75 claim - I don't believe this is clearly spelt out in the legislation itself but is endorsed by case study 7 at https://www.financial-ombudsman.org.uk/publications/technical_notes/goods-and-services-bought-with-credit.html.

However, as you've pointed out above, the figure requested can't possibly equate to interest on the reclaimed £700 purchase seven months earlier (on which you'd presumably already paid interest anyway), so the ball is still presumably in their court to clarify how they've arrived at their figure?