Can we claim interest?

martymcfly_5

Hi,

Hope you can help...

We sold our property 13th July 2007. Received letter from Solicitor advising Balance Due to Client on Completion £84.532.82 & that balance would be retained (at our request) to be put towards purchase property.

Due to delays, purchase completed 10th August 2007 (28 days).

Firstly, are we entitled to any interest on the £84k they held for 28days? If so, can anyone give an indication of how much we could expect? Finally, if we are entitled to any money, I expect to have difficulty getting a response from the solicitor - can I mention any rights/authority in the correspondance to them (will be recorded delivery)?

Thanks in advance.

PasturesNew

As I understand it, funds held by a solicitor usually do attract a small amount of interest, which the solicitor is happy to hand over. It is a very small rate of interest though, not like you'd have got if you'd taken it yourself and put it in a High Street bank.

Get in touch with the solicitor and find out what they do with client money as each one will be different.

Kaz2904

Actually solicitors do have to put the money into a comparable account. It won't be one of the best accounts but I think you ought to attract 4%.
We had monies outstanding, they held £64k for us for 2 months. We had a check 2 years after for £150.
I don't know if this was correct but the solicitors were dreadful so I couldn't be bothered to chase any more!

clutton_2

i also have had money from solicitors for interest on my funds in their account - its quite normal - just ask

MissMoneypenny

martymcfly wrote: »

Firstly, are we entitled to any interest on the £84k they held for 28days?

You certainly are. Look at rule 24 on The Law Society Solicitors' Accounts Rules
http://66.102.9.104/search?q=cache:Y2lulueWzlEJ:lawsociety.org.uk/documents/downloads/Profethics_SAR.pdf+law+england+solicitors+clients+mone*+interest&hl=en&ct=clnk&cd=1&gl=uk&client=firefox-a#19

martymcfly wrote: »

Finally, if we are entitled to any money, I expect to have difficulty getting a response from the solicitor - can I mention any rights/authority in the correspondance to them (will be recorded delivery)?

Yes, mentioning The Law Society normally sends the fear of God into them.

If it were me, I would phone The Law Society and ask if there is a fixed rate of interest that they have to pay you. There was when I took a solicitor to task for not paying me my interest. Some of them seem to "forget" about the interest they owe the client, unless reminded:rolleyes:.

Forgot to add. This is for England and Wales. If you live in Scotland, you will need to look up what their Law Society states.

alidai

I have experience of auditing solicitors accounts, and yes they do have to keep your money in a completely separate client account. This account should be a regular interest-bearing account and so you should be entitled some interest.

Most solicitors have a rule that entitles you to the interest over a nominal amount (around 20 quid).

At 4%, your 84,000 should have earnt you around the 250 quid figure.

plane_boy2000

Just ask your solicitor what rate of interest they will be paying you n the funds rather than if they will be paying.

IIRC they have to pay you the ineterst on funds held over a certain period anyway.