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

Sea_Shell

Can you find a chart listing all the historic bank base rates*, and then add that % to the starting balance, then again for the next and the next, and so on.

Eg in 2004 @ 2% = £3570 (3500+2%)
2005 @ 1% = £3605 (3570+1%)
2006 etc etc for another 18 years.
Then deduct £3500 from the final figure.

There's your compound interest figure.

That's how I'd do it.


* If they change multiple times in a year, average them?


ETA - https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp

MeteredOut

Grumpy_chap said:

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.

...and make sure they compound it.

Here's the historic BOE interest rates: https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp

Jude57

There's an article here that gives some information, I don't know if it will help the OP:

https://www.jonathonbray.com/what-is-a-fair-sum-of-interest-to-pay-on-client-money-payment-of-interest-policy/

And here's an example of one firm's Interest on Client Funds policy:

https://www.stephensons.co.uk/site/help/interest-policy/

If I was the OP, I'd be asking to see the firm's own policy as a starting point in calculating interest due. I agree with those saying that the OP shouldn't feel pressured into accepting a derisory amount especially as the retention of these funds over such a protracted time seems particularly egregious.

MeteredOut

Just because I like spreadsheets, I knocked this up for the OP. Assuming a savings account providing the average BOE rate each year from 2003-2023 (which I know wouldn't not have been the case, but is indicative), and compounding the interest, £3,500 would end up at £5177 after 20 years.

Year	Avg Rate	Opening	Interest	Closing
2003	3.67	3,500.00	128.33	3,628.33
2004	4.38	3,628.33	158.74	3,787.07
2005	4.50	3,787.07	170.42	3,957.49
2006	4.88	3,957.49	192.93	4,150.42
2007	5.50	4,150.42	228.27	4,378.69
2008	3.95	4,378.69	172.96	4,551.65
2009	1.00	4,551.65	45.52	4,597.17
2010	0.50	4,597.17	22.99	4,620.15
2011	0.50	4,620.15	23.10	4,643.25
2012	0.50	4,643.25	23.22	4,666.47
2013	0.50	4,666.47	23.33	4,689.80
2014	0.50	4,689.80	23.45	4,713.25
2015	0.50	4,713.25	23.57	4,736.82
2016	0.25	4,736.82	11.84	4,748.66
2017	0.50	4,748.66	23.74	4,772.40
2018	0.75	4,772.40	35.79	4,808.20
2019	0.75	4,808.20	36.06	4,844.26
2020	0.18	4,844.26	8.48	4,852.73
2021	0.25	4,852.73	12.13	4,864.87
2022	1.75	4,864.87	85.14	4,950.00
2023	4.60	4,950.00	227.70	5,177.70

MeteredOut

I tweaked my spreadsheet a little further. Even if the interest rate applied is average BOE for year minus 2%, with a floor of 0.1%, the final amount still comes out at £4,217.22.

Clearly, under £100 interest is a derisory offer.

Year	Average BOE Rate	Rate Used	Opening	Interest	Closing
2003	3.67	1.67	3,500.00	58.33	3,558.33
2004	4.38	2.38	3,558.33	84.51	3,642.84
2005	4.50	2.50	3,642.84	91.07	3,733.91
2006	4.88	2.88	3,733.91	107.35	3,841.26
2007	5.50	3.50	3,841.26	134.44	3,975.71
2008	3.95	1.95	3,975.71	77.53	4,053.24
2009	1.00	0.10	4,053.24	4.05	4,057.29
2010	0.50	0.10	4,057.29	4.06	4,061.35
2011	0.50	0.10	4,061.35	4.06	4,065.41
2012	0.50	0.10	4,065.41	4.07	4,069.47
2013	0.50	0.10	4,069.47	4.07	4,073.54
2014	0.50	0.10	4,073.54	4.07	4,077.62
2015	0.50	0.10	4,077.62	4.08	4,081.69
2016	0.25	0.10	4,081.69	4.08	4,085.78
2017	0.50	0.10	4,085.78	4.09	4,089.86
2018	0.75	0.10	4,089.86	4.09	4,093.95
2019	0.75	0.10	4,093.95	4.09	4,098.04
2020	0.18	0.10	4,098.04	4.10	4,102.14
2021	0.25	0.10	4,102.14	4.10	4,106.24
2022	1.75	0.10	4,106.24	4.11	4,110.35
2023	4.60	2.60	4,110.35	106.87	4,217.22

delilahdelilah

Thankyou so much MeteredOut fir such a big effort in your reply I very much appreciate it 
also Grumpy Chap and Jude 

Sea_Shell

Well done.   That's definitely going the extra mile to help a poster. 😇

£100 is an insult in light of those figures.

delilahdelilah

Ya totally going the extra mile …. All of the comments and I really appreciate the suggestions 

delilahdelilah

I have asked the solicitor for their interest calculations and an explanation of how this happened so waiting for the reply

Grumpy_chap

That work by @MeteredOut is superb, but I do think it is all for the Solicitor to set out their calculation first, not for the OP.

BoE is one base rate metric that might be used.  It is not uncommon for the Barclays Bank rate to be used - in my experience in corporate stuff, it is always Barclays and I have no idea why them and not another clearing bank.  There is also the inter-bank rate (LIBOR) - which has had its own challenges in the period.  

I wonder whether there is a recommended rate from the Law Society?

Oh - just searched and found this:
https://www.lawsociety.org.uk/topics/property/law-society-interest-rate

It is well above the rates used in the assessment by MeteredOut - I wonder if their spreadsheet can tweak to this?  It will give a far more generous pay-out.

I really do think to make the Solicitor do the leg work at each step.  Once this is "resolved" as far as the Solicitor is concerned, it may be that the OP will wish to make a complaint.  If the Solicitor is then uncooperative and things have to go to the Law Society, the Solicitor's apparent intransigence might work to the OP's favour.