8% interest or 18.8 percent compound interest?

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richthespoof Posts: 3 Newbie

30 November 2007 at 2:40PM in Reclaim bank & credit card charges

I know this irrelevant for the moment, but why would the court award 8% interest on the reclaimed bank charges rather than the 18.9% charged by the bank for an overdraft.
Or is this the amount they award for the bank having deny the customer the ability to earn interest if they happened to be in credit?

I have calculated both the 8% none compound, and the 18.9% compound interest charged by my bank, and as one would expect the difference is very large (In my case about £140 difference)

In the event of the banks being told to pay back the charges, does anyone know if it would be standard procedure to just calculate the 8%.

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8% interest or 18.8 percent compound interest?

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