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

user1977

delilahdelilah said:

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

Might be helpful to know what originally happened - I have seen eg a cheque going out, and for whatever reason never gets banked. So the money gets written back to the solicitors’ account after six months, and then they ought to have taken further steps to contact the recipient. But this sort of admin is often low priority when the fee-earners are busy with live transactions, or they assume somebody else is dealing with it, or they leave the firm and nobody thinks it’s their job to pick it up…none of which are good excuses of course, and I can’t remember seeing big sums after 20 years. 

silvercar

delilahdelilah said:

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 

Makes more sense now. When you first said “a significant sum” I was thinking that solicitors often transferring mortgage funds around would mean that it was a six figure amount! I can understand how a few thousand could be lost in the solicitors own client account, whereas to you it represents a big loss. Does make you wonder how the auditors missed it! 

delilahdelilah

Yes I wondered myself and for 30 years …. ? Thankyou for your reply

Grumpy_chap

delilahdelilah said:

Yes I wondered myself and for 30 years …. ? Thankyou for your reply

Doesn't time fly.  10 more years than at the start of the thread.

delilahdelilah

Grumpy_chap said:

delilahdelilah said:

Yes I wondered myself and for 20 years …. ? Thankyou for your reply

Doesn't time fly.  10 more years than at the start of the thread.

I meant 20 

delilahdelilah

I have received an update from the solicitor 


“ I've calculated the interest due to yourself on the client balance held.

I will send that out now for you by BACS, you should receive an amount of £  on Wednesday. “

the amount is under £100 …interest on the withheld 3500 for the 20 years …. 

Seems very low 
any advice appreciated 

BarelySentientAI

That sounds like 1 year's interest.

user1977

delilahdelilah said:

the amount is under £100 …interest on the withheld 3500 for the 20 years …. 

Seems very low 
any advice appreciated 

Have you calculated what the figure ought to be? Do that, then ask for it.

delilahdelilah

user1977 said:

delilahdelilah said:

the amount is under £100 …interest on the withheld 3500 for the 20 years …. 

Seems very low 
any advice appreciated 

Have you calculated what the figure ought to be? Do that, then ask for it.

user1977 said:

delilahdelilah said:

the amount is under £100 …interest on the withheld 3500 for the 20 years …. 

Seems very low 
any advice appreciated 

Have you calculated what the figure ought to be? Do that, then ask for it.

Wouldn’t know how to calculate it as wouldn’t know what rates were etc… I’ve looked on Google and don’t know how it would apply in this case .: 

Grumpy_chap

delilahdelilah said:

I have received an update from the solicitor 


“ I've calculated the interest due to yourself on the client balance held.

I will send that out now for you by BACS, you should receive an amount of £  on Wednesday. “

the amount is under £100 …interest on the withheld 3500 for the 20 years …. 

Seems very low 
any advice appreciated 

Ask the Solicitors to share:
1. their calculation for how the interest was calculated,
2. including the rates applied and each period that the rates applied.
3. reference for the rates applied

Better to make them do the leg work, then you can check / challenge rather than the other way round.