Solicitor held my money for 20 years should I get interest on top of the capital amount

Grumpy_chap

The OP has the original money already paid back (~£3.4k) and an offer of an additional £3.5k to reflect loss of use of the money over the period.

I'd be inclined to take that offer and think it a fair one.

BoE inflation calculator shows that £1 originally would now be worth around £1.85, so just under double.

The settlement offered to the OP is just over double.

Most people with that money 22 years ago would have done one of the following:

• spent the money - having the inflation adjusted amount now matches the same spending power
• saved in a regular interest bearing account - likely to have closely or just under tracked inflation
• invested in a tracker fund - likely to have tracked over inflation but not by massive amounts (depending upon the risk profile)

The settlement offered is a fair outcome for any of those typical approaches.

Obviously, the OP might just have invested the original sum in a high risk single share holding that got lucky and the fund would have made the OP a millionaire.

Equally as likely is that the OP invested the original sum and lost the lot.

Overall, the current solution seems like one to accept and then focus on the important things. 😊

QrizB

Obviously, the OP might just have invested the original sum in a high risk single share holding that got lucky

Apple shares were around $0.50 in 2004 and are $300 today, so a 600x return ...

However I don't think OP would have chosen that approach unless they had a foolproof crystal ball. And if they did have a foolproof crystal ball, they'd be posting to the forum from their superyacht and wouldn't be bothered by £3500!

delilahdelilah

https://forums.moneysavingexpert.com/discussion/comment/81999693#Comment_81999693

Thank you, QrizB.

That is a very helpful and well-put point. I agree that the appropriate comparison is what the money might reasonably have earned or saved, rather than any speculative investment return.

I appreciate your perspective

delilahdelilah

https://forums.moneysavingexpert.com/discussion/comment/81999581#Comment_81999581

Thank you, Grumpy_chap

I appreciate your thoughtful and balanced analysis. Your comments about inflation, typical uses of the money, and the practical considerations are very helpful.

Thank you for taking the time to set this out so clearly.

delilahdelilah

https://forums.moneysavingexpert.com/discussion/comment/81996757#Comment_81996757

https://forums.moneysavingexpert.com/discussion/comment/81996757#Comment_81996757

Thank you, user1977.

Not yet. The firm has made a global settlement offer of £3,500 in addition to repaying the original sum, but they have not provided a detailed breakdown of how that figure was calculated.

I am considering asking them to explain how they arrived at the amount, including what portion reflects interest and whether any part relates to inconvenience and the time involved in resolving the matter.

BikingBud

I think it's time to get off the fence, before it can be claimed that you are being unreasonable.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82000727#Comment_82000727

Are you inclined to accept the £3.5k as "full and final settlement"?

If so, get on with it and accept it and take the money and bring this whole matter to a close as swiftly as possible.

There is every possibility that continuing to challenge and ask questions and drag the whole process out will result in the offer being withdrawn. You may think you are only asking for clarification but the Solicitors will almost certainly see any further queries as challenging the offer / non-acceptance.

What will you do if you get an answer that is not helpful? What if the Solicitors say "we calculated the value as the original sum owed multiplied by the number of goblins in the garden, then multiplied by the change in average tooth fairy payment over that time and then added a small uplift represented by the size of the garden gnomes' manhood and then multiplied the answer by the number of flying pigs seen that day and then added £3.5k"?

If the Solicitors don't get this resolved soon enough, they might think they are just as well to pay nothing and take their chances with you trying to pursue via small claims court.

If you are not inclined to accept the £3.5k, then query away.

delilahdelilah

https://forums.moneysavingexpert.com/discussion/comment/82000850#Comment_82000850

Thank you, Grumpy_chap.

That is a very practical and helpful way of looking at it.

You are quite right that the key issue is whether I am broadly satisfied with the offer and whether bringing the matter to a close is the best course.

I appreciate your perspective and the time you have taken to explain it

GDB2222

Presumably, if you're unhappy with the £3,500 figure, you could take this to the Legal Ombudsman?

delilahdelilah

https://forums.moneysavingexpert.com/discussion/comment/82001229#Comment_82001229

Thank you, GDB2222.

I have found the advice on this forum extremely helpful. The range of views has given me a broader perspective and is helping me decide what would be a fair and reasonable resolution.

I appreciate everyone’s input.