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

Grumpy_chap

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 

Did you have any (historic) record as to how much the sum was that should have been paid?  Is the sum now paid matching?

Wait until you receive the interest and the calculation for that interest.

As to compensation after that, it is down to an assessment of whether you suffered any loss.  I provided some pointers upthread as to the types of factors you might consider in that regard.

For a delay in repayment of a meaningful sum, then the Solicitors' really should not have taken 20 years, but you should have realised and followed it up rather more promptly.  Any compensation over and above demonstrable loss, so "apology" linked, is rather more vague though the Law Society may have guidelines for establishing this type of payment.

I would not ask for compensation at this stage.
Get what you are correctly due and then, once that is all correct, including correct assessment of any interest, and all paid, at that point consider whether a compliant (which might lead to compensation) is relevant and worthwhile.

Although you say it is a "significant amount of money", and claim for compensation could be met with the challenge that you have not missed the money because you never asked for it / chased it up.  

artyboy

user1977 said:

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

Maybe the senior partner is having a break down at the prospect of being caught out and having to pay interest...

Grumpy_chap

artyboy said:

user1977 said:

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

Maybe the senior partner is having a break down at the prospect of being caught out and having to pay interest...

It is very odd that the Solicitor's managed to "accidentally withheld a significant amount of money" for twenty years and then not realise they needed to apply interest when that was eventually repaid to the rightful owner.

The issue must have been complex in one way or another, otherwise one assumes that the OP would have realised the "significant amount of money" had not been properly accounted for all those years back.

delilahdelilah

The solicitor / admin dealing with it said she’d calculate the interest and send it to me.  Silvercar … as you say there may not be a breakdown? I did ask for one but she hasn’t mentioned it even though I’d asked. 

 

“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 may suggest that they could consider compensation …. 

And regarding the 

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

I was selling my property to free up cash to go to auction and I would have had to borrow less on a new mortgage if I’d had the capital they held 

many thanks for your reply

Grumpy_chap

delilahdelilah said:

The solicitor / admin dealing with it said she’d calculate the interest and send it to me.  Silvercar … as you say there may not be a breakdown? I did ask for one but she hasn’t mentioned it even though I’d asked. 

 

“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 may suggest that they could consider compensation …. 

And regarding the 

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

I was selling my property to free up cash to go to auction and I would have had to borrow less on a new mortgage if I’d had the capital they held 

many thanks for your reply

If it were me, I would not ask for compensation at this stage.

My approach would be along the following lines (which may need to adapt as things progress):

1. Confirm that the correct sum as originally due has now been paid.
2. Allow the Solicitors to calculate and pay the interest for the 20 years.
3. Confirm that this interest is correctly calculated.  It will be a complex assessment because of changes of interest rate plus compounding over the prolonged time period.  I would expect there is some reference basis to BoE base rate (or a specific High Street bank rate) that the interest should be linked to.
4. Challenge, if necessary, the interest paid and get this resolved and fully paid to the correct amount.
5. Assess any losses suffered that can be quantified and seek these to be made good by the Solicitors.  This might include additional taxation resulting from the interest being paid in one year rather than over time.  Also, costs to borrow that exceed the interest earned (after taxation).  I would not, at this point, reference the word "compensation" because it can be taken with a loaded meaning.
6. Once everything you *should* be paid has been addressed, make a formal complaint to the Solicitors (as per their internal complaints process).
7. If the internal complaints process is not successful, consider a formal compliant to the Law Society.

Don't be pressured into signing a "full and final" settlement until such time as you are satisfied.

I am a tad surprised that the Solicitors are not offering a "goodwill gesture" to conclude this amicably as they must realise that they have made a rather large mistake here.

The issue around compensation (other than anything that can be clearly demonstrated as suggested above - there may be other similar lines) is that the OP appears not to have suffered any loss / stress etc as a result of this error.
As much as the Solicitors clearly made an error, the OP might reasonably have expected to be aware and follow up on the "significant amount of money" that was not paid in the timely fashion.

Sea_Shell

Grumpy_chap said:

delilahdelilah said:

The solicitor / admin dealing with it said she’d calculate the interest and send it to me.  Silvercar … as you say there may not be a breakdown? I did ask for one but she hasn’t mentioned it even though I’d asked. 

 

“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 may suggest that they could consider compensation …. 

And regarding the 

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

I was selling my property to free up cash to go to auction and I would have had to borrow less on a new mortgage if I’d had the capital they held 

many thanks for your reply

If it were me, I would not ask for compensation at this stage.

My approach would be along the following lines (which may need to adapt as things progress):

1. Confirm that the correct sum as originally due has now been paid.
2. Allow the Solicitors to calculate and pay the interest for the 20 years.
3. Confirm that this interest is correctly calculated.  It will be a complex assessment because of changes of interest rate plus compounding over the prolonged time period.  I would expect there is some reference basis to BoE base rate (or a specific High Street bank rate) that the interest should be linked to.
4. Challenge, if necessary, the interest paid and get this resolved and fully paid to the correct amount.
5. Assess any losses suffered that can be quantified and seek these to be made good by the Solicitors.  This might include additional taxation resulting from the interest being paid in one year rather than over time.  Also, costs to borrow that exceed the interest earned (after taxation).  I would not, at this point, reference the word "compensation" because it can be taken with a loaded meaning.
6. Once everything you *should* be paid has been addressed, make a formal complaint to the Solicitors (as per their internal complaints process).
7. If the internal complaints process is not successful, consider a formal compliant to the Law Society.

Don't be pressured into signing a "full and final" settlement until such time as you are satisfied.

I am a tad surprised that the Solicitors are not offering a "goodwill gesture" to conclude this amicably as they must realise that they have made a rather large mistake here.

The issue around compensation (other than anything that can be clearly demonstrated as suggested above - there may be other similar lines) is that the OP appears not to have suffered any loss / stress etc as a result of this error.
As much as the Solicitors clearly made an error, the OP might reasonably have expected to be aware and follow up on the "significant amount of money" that was not paid in the timely fashion.

Interesting point.   (No pun intended 😉)

I guess interest is interest, so HMRC will be interested in it, and any tax due, depending on the OPs personal income/tax/savings position.

It probably won't get automatically declared though, as the solicitors aren't a bank.

GDB2222

If you have borrowed more money on a mortgage, then you really ought to receive the compounded interest on that amount of your mortgage.

delilahdelilah

artyboy said:

user1977 said:

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

Maybe the senior partner is having a break down at the prospect of being caught out and having to pay interest...

I wonder what sort of reason could cause this to be overlooked … of course I did not question this years ago as I trusted the amount given to me was calculated as funds due to me and never imagined that a large chunk would be missing

delilahdelilah

Grumpy_chap said:

delilahdelilah said:

The solicitor / admin dealing with it said she’d calculate the interest and send it to me.  Silvercar … as you say there may not be a breakdown? I did ask for one but she hasn’t mentioned it even though I’d asked. 

 

“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 may suggest that they could consider compensation …. 

And regarding the 

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

I was selling my property to free up cash to go to auction and I would have had to borrow less on a new mortgage if I’d had the capital they held 

many thanks for your reply

If it were me, I would not ask for compensation at this stage.

My approach would be along the following lines (which may need to adapt as things progress):

1. Confirm that the correct sum as originally due has now been paid.
2. Allow the Solicitors to calculate and pay the interest for the 20 years.
3. Confirm that this interest is correctly calculated.  It will be a complex assessment because of changes of interest rate plus compounding over the prolonged time period.  I would expect there is some reference basis to BoE base rate (or a specific High Street bank rate) that the interest should be linked to.
4. Challenge, if necessary, the interest paid and get this resolved and fully paid to the correct amount.
5. Assess any losses suffered that can be quantified and seek these to be made good by the Solicitors.  This might include additional taxation resulting from the interest being paid in one year rather than over time.  Also, costs to borrow that exceed the interest earned (after taxation).  I would not, at this point, reference the word "compensation" because it can be taken with a loaded meaning.
6. Once everything you *should* be paid has been addressed, make a formal complaint to the Solicitors (as per their internal complaints process).
7. If the internal complaints process is not successful, consider a formal compliant to the Law Society.

Don't be pressured into signing a "full and final" settlement until such time as you are satisfied.

I am a tad surprised that the Solicitors are not offering a "goodwill gesture" to conclude this amicably as they must realise that they have made a rather large mistake here.

The issue around compensation (other than anything that can be clearly demonstrated as suggested above - there may be other similar lines) is that the OP appears not to have suffered any loss / stress etc as a result of this error.
As much as the Solicitors clearly made an error, the OP might reasonably have expected to be aware and follow up on the "significant amount of money" that was not paid in the timely fashion.

Thankyou for such a lengthy response … and good advice.   I will wait until they have calculated the interest and given me a breakdown …. Then find out what, if any, compensation /goodwill gesture is suggested.   I do feel that this is their error and wonder why it’s taken so long to come to their attention - why hasn’t it come in accounts audit ? It is a few thousand - not a few hundred 
again thanks for your help 

delilahdelilah

Thankyou all who have commented … not sure to use the site … so if I’ve not responded to individuals …. I really appreciate all your help