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

kipperman

Plus the fact that the solicitors after 20 years fessed up - which would make me think that their moral standing is probably beyond reproach - although as for their competency..?

Yorkie1

https://www.sra.org.uk/sra/news/sra-update-126-interest-rates/
https://www.lawgazette.co.uk/news/pass-on-client-interest-earnings-fairly-firms-warned/5117475.article

Ask them for details of their policy (or policies) over the intervening period. This should set out how they calculate it for that firm. Here is an example from a completely random firm that I found when searching:
https://www.stephensons.co.uk/site/help/interest-policy/

I note that at the end of the policy from that solicitors, there is a comment "Interest is paid without any deduction of tax and where relevant must be disclosed to HM Revenue & Customs on Self Assessment (individuals) or Corporation Tax (companies) returns."

Whilst I don't know enough to say that this statement is accurate, I would certainly look into it too. If you will be taxed on the amount, then perhaps that is worth bearing in mind when considering whether any compensation is due to you on top of the fair interest.

delilahdelilah

Thankyou all so much for taking the time to comment.   I was assured it will be sent via bank transfers by Friday.  Should I ask for a breakdown before the transfer.  Would it be considered full settlement if it’s already been accepted by me

Grumpy_chap

delilahdelilah said:

Thankyou all so much for taking the time to comment.   I was assured it will be sent via bank transfers by Friday.  Should I ask for a breakdown before the transfer.  Would it be considered full settlement if it’s already been accepted by me

I would say to let them complete the transfer on Friday.  Once the funds at whatever the Solicitor has calculated are safely in your possession, you can then challenge if appropriate for any correction and / or compensation.
Obviously, it will be understandable if you do not wish to sign any "full and final settlement" statement.

The Solicitor may well provide a detailed break down when they transmit the funds, but this can follow.
This should demonstrate the interest that has been applied each period and show clearly that interest has been compounded.

There may be grounds for some compensation. 
This would be established on the basis of losses you have suffered as a direct result of the failure by the Solicitor.
An obvious loss is possible variance of income tax liabilities.  If the interest had been accrued over several years, the income may well have fallen into a lower tax bracket than if the interest is all paid in one year.  (It may be worth checking that this is still treated as interest - income - and not a capital gain.)

Other losses are probably more remote, but may well be real and demonstrable. 
Have you needed to carry additional borrowing at a higher interest rate than the Solicitor is applying (after tax) to your funds?
The counter to other losses that the Solicitor may make is whether you should have realised the error and had the matter resolved sooner.

Good luck

delilahdelilah

Thankyou so much fir such a comprehensive reply x many thanks 

delilahdelilah

I have received the amount into my account.  I have emailed the company now as suggested asking for a breakdown and asked if this includes interest.  Thanks for all your help

MacPingu1986

theartfullodger said:

MEM62 said:

martindow said:

theartfullodger said:

You are lucky they didn't go bust...

They have been financed over 20 years by the OP's money ... who knows what will happen when it's repaid.

No, they haven't.  The solicitor cannot use client funds for the running of their business.  Clients funds are held in a separate account as the money has to be ringfenced.  

and there's never been an example of solicitors not abiding by the rules?  Aye, right, just like nobody ever drives faster than 70mph on UK roads...

Client Account rules are incredibly strict and almost any breach higher than the most minimal is a striking off offense and if it's a small firm - shut down and intervened. Any unauthorized use of, or mixing of clients monies is without a doubt the easiest way to lose your career as a solicitor - almost every firm takes he client account rules *incredibly* seriously.

delilahdelilah

I received a payment into my account today and asked for a breakdown and whether there was interest and received this reply …. 

‘It doesn't include interest but I can work that out for you, and send it on.’

i wonder also why she didn’t send a breakdown/explanation 
I also didn’t ask for compensation for the error - would it be unreasonable to ask ? 

Many thank 

silvercar

delilahdelilah said:

I received a payment into my account today and asked for a breakdown and whether there was interest and received this reply …. 

‘It doesn't include interest but I can work that out for you, and send it on.’

i wonder also why she didn’t send a breakdown/explanation 
I also didn’t ask for compensation for the error - would it be unreasonable to ask ? 

Many thank 

Have you suffered any losses as a result of not having this money eg any borrowing taken?

I’d want to know how much it would cost the solicitor if you made a formal complaint to the Law Society/ ombudsman. I’d then ask for compensation based on that.

I would guess that she didn’t include a breakdown because there isn’t one. All she’s done is return your money. I may be tempted to reply that you would like the interest and to see the calculation and ask how much compensation she is offering.

user1977

What is there to be broken down if the sum doesn’t include interest?