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

BobT36

It might be the interest generated in THEIR account (which may be a low rate account). 
Presume you should push for it to be calculated on what you MISSED OUT ON if you had the money in YOUR account. At least at the base rates. 

Them holding that money put you "out of pocket" due to YOU missing interest on it. 

pinkshoes

delilahdelilah said:

I have received the following interest breakdown on the figures …. Covering the period 2004 to date 

Dates Yr int rate £ wks int calc

01/07/2004 31/12/2004 2004 0.05% £3,367.40 26 £0.84

01/01/2005 31/12/2005 2005 0.05% £3,368.24 52 £1.68

01/01/2006 31/12/2006 2006 0.05% £3,369.93 52 £1.68

01/01/2007 31/12/2007 2007 0.05% £3,371.61 52 £1.69

01/01/2008 31/12/2008 2008 0.05% £3,373.30 52 £1.69

01/01/2009 31/12/2009 2009 0.05% £3,374.98 52 £1.69

01/01/2010 31/12/2010 2010 0.10% £3,376.67 52 £3.38

01/01/2011 31/12/2011 2011 0.10% £3,380.05 52 £3.38

01/01/2012 31/12/2012 2012 0.10% £3,383.43 52 £3.38

01/01/2013 31/12/2013 2013 0.10% £3,386.81 52 £3.39

01/01/2014 31/12/2014 2014 0.10% £3,390.20 52 £3.39

01/01/2015 31/12/2015 2015 0.10% £3,393.59 52 £3.39

01/01/2016 31/12/2016 2016 0.10% £3,396.98 52 £3.40

01/01/2017 31/12/2017 2017 0.05% £3,400.38 52 £1.70

01/01/2018 31/12/2018 2018 0.20% £3,402.08 52 £6.80

01/01/2019 31/12/2019 2019 0.05% £3,408.88 52 £1.70

01/01/2020 05/06/2020 2020 0.05% £3,410.59 23 £0.75

06/06/2020 31/12/2020 2020 0.01% £3,411.34 29 £0.19

01/01/2021 31/12/2021 2021 0.01% £3,411.53 52 £0.34

01/01/2022 31/05/2022 2022 0.01% £3,411.87 21 £0.14

01/06/2022 09/10/2022 2022 0.10% £3,412.01 19 £1.25

10/10/2022 22/11/2022 2022 0.35% £3,413.26 6 £1.38

23/11/2022 31/12/2022 2022 0.50% £3,414.64 6 £1.97

01/01/2023 08/01/2023 2023 0.50% £3,416.61 1 £0.33

09/01/2023 05/03/2023 2023 0.60% £3,416.93 8 £3.15

06/03/2023 16/04/2023 2023 0.70% £3,420.09 6 £2.76

17/04/2023 10/06/2023 2023 0.75% £3,422.85 8 £3.95

12/06/2023 09/07/2023 2023 0.80% £3,426.80 4 £2.11

10/07/2023 20/08/2023 2023 0.90% £3,428.91 6 £3.56

21/08/2023 25/09/2023 2023 1.10% £3,432.47 5 £3.63

26/09/2023 31/12/2023 2023 1.30% £3,436.10 14 £12.03

01/01/2024 26/04/2024 2024 1.30% £3,448.13 17 £14.65

£95.38

so still arrive at 95.38 which is what they paid to me last week 

Those are no doubt the interest rates in the account that they held the money.

I'd respond saying as such, and that although you appreciate this is the interest that have accrued over the 20 years, they need to be paying you the interest rate that YOU would have accrued over the 20 years in your own savings account, which is essentially what you have missed out on. I'd then send a copy of your own bank account interest rates over the 20 years with your own calculation and say that this is the amount they need to pay. I'd be quite assertive here as it's not your fault they kept it in such a low interest account.

silvercar

pinkshoes said:

delilahdelilah said:

I have received the following interest breakdown on the figures …. Covering the period 2004 to date 

Dates Yr int rate £ wks int calc

01/07/2004 31/12/2004 2004 0.05% £3,367.40 26 £0.84

01/01/2005 31/12/2005 2005 0.05% £3,368.24 52 £1.68

01/01/2006 31/12/2006 2006 0.05% £3,369.93 52 £1.68

01/01/2007 31/12/2007 2007 0.05% £3,371.61 52 £1.69

01/01/2008 31/12/2008 2008 0.05% £3,373.30 52 £1.69

01/01/2009 31/12/2009 2009 0.05% £3,374.98 52 £1.69

01/01/2010 31/12/2010 2010 0.10% £3,376.67 52 £3.38

01/01/2011 31/12/2011 2011 0.10% £3,380.05 52 £3.38

01/01/2012 31/12/2012 2012 0.10% £3,383.43 52 £3.38

01/01/2013 31/12/2013 2013 0.10% £3,386.81 52 £3.39

01/01/2014 31/12/2014 2014 0.10% £3,390.20 52 £3.39

01/01/2015 31/12/2015 2015 0.10% £3,393.59 52 £3.39

01/01/2016 31/12/2016 2016 0.10% £3,396.98 52 £3.40

01/01/2017 31/12/2017 2017 0.05% £3,400.38 52 £1.70

01/01/2018 31/12/2018 2018 0.20% £3,402.08 52 £6.80

01/01/2019 31/12/2019 2019 0.05% £3,408.88 52 £1.70

01/01/2020 05/06/2020 2020 0.05% £3,410.59 23 £0.75

06/06/2020 31/12/2020 2020 0.01% £3,411.34 29 £0.19

01/01/2021 31/12/2021 2021 0.01% £3,411.53 52 £0.34

01/01/2022 31/05/2022 2022 0.01% £3,411.87 21 £0.14

01/06/2022 09/10/2022 2022 0.10% £3,412.01 19 £1.25

10/10/2022 22/11/2022 2022 0.35% £3,413.26 6 £1.38

23/11/2022 31/12/2022 2022 0.50% £3,414.64 6 £1.97

01/01/2023 08/01/2023 2023 0.50% £3,416.61 1 £0.33

09/01/2023 05/03/2023 2023 0.60% £3,416.93 8 £3.15

06/03/2023 16/04/2023 2023 0.70% £3,420.09 6 £2.76

17/04/2023 10/06/2023 2023 0.75% £3,422.85 8 £3.95

12/06/2023 09/07/2023 2023 0.80% £3,426.80 4 £2.11

10/07/2023 20/08/2023 2023 0.90% £3,428.91 6 £3.56

21/08/2023 25/09/2023 2023 1.10% £3,432.47 5 £3.63

26/09/2023 31/12/2023 2023 1.30% £3,436.10 14 £12.03

01/01/2024 26/04/2024 2024 1.30% £3,448.13 17 £14.65

£95.38

so still arrive at 95.38 which is what they paid to me last week 

Those are no doubt the interest rates in the account that they held the money.

I'd respond saying as such, and that although you appreciate this is the interest that have accrued over the 20 years, they need to be paying you the interest rate that YOU would have accrued over the 20 years in your own savings account, which is essentially what you have missed out on. I'd then send a copy of your own bank account interest rates over the 20 years with your own calculation and say that this is the amount they need to pay. I'd be quite assertive here as it's not your fault they kept it in such a low interest account.

I agree, this is all their problem and their loss. From their point of view, they would only have intended holding money for a short time, so a low interest instant access business account would have served their needs.

RHemmings

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 

Over 20 years, that would be an interest rate of less than 0.142% 

If they paid 8% interest per annum, which is one interest rate used for some types of debt, then they should pay you £16313.35. I'm not sure that the interest rate of 8% applies here.

According to the BoE, £3500 in 2004 would be worth £6,083.36 in Mar 2024 (the latest possible date). If I were you, I would point this out to them and suggest £6,083.36 to them as a reasonable sum. 

delilahdelilah

Thankyou for all your comments I will ask them to reconsider the amount using a better interest rate …. Or as suggested try to find my own bank interest rates Halifax 

delilahdelilah

I feel that I am grateful that they bought this to my attention but at the end of the day their error cost me a loss of a large sum of money…. £3367…. And yes it’s lovely to have this back in my possession … it was a huge error on their part and a small interest payment of 95.38 is really not a good amount. 

pogg000

Don't calculate on saving rates, use borrow rates.


As this  is what you have lost.

Hoenir

BobT36 said:

It might be the interest generated in THEIR account (which may be a low rate account). 

Won't be their account. It will be the clients account they hold. Solicitors being required under strict rules to hold clients monies independently of their own. The rates of interest will be the commercial rates given by their bankers for putting the balance in the clients bank account on overnight deposit. 

delilahdelilah

pinkshoes said:

delilahdelilah said:

I have received the following interest breakdown on the figures …. Covering the period 2004 to date 

Dates Yr int rate £ wks int calc

01/07/2004 31/12/2004 2004 0.05% £3,367.40 26 £0.84

01/01/2005 31/12/2005 2005 0.05% £3,368.24 52 £1.68

01/01/2006 31/12/2006 2006 0.05% £3,369.93 52 £1.68

01/01/2007 31/12/2007 2007 0.05% £3,371.61 52 £1.69

01/01/2008 31/12/2008 2008 0.05% £3,373.30 52 £1.69

01/01/2009 31/12/2009 2009 0.05% £3,374.98 52 £1.69

01/01/2010 31/12/2010 2010 0.10% £3,376.67 52 £3.38

01/01/2011 31/12/2011 2011 0.10% £3,380.05 52 £3.38

01/01/2012 31/12/2012 2012 0.10% £3,383.43 52 £3.38

01/01/2013 31/12/2013 2013 0.10% £3,386.81 52 £3.39

01/01/2014 31/12/2014 2014 0.10% £3,390.20 52 £3.39

01/01/2015 31/12/2015 2015 0.10% £3,393.59 52 £3.39

01/01/2016 31/12/2016 2016 0.10% £3,396.98 52 £3.40

01/01/2017 31/12/2017 2017 0.05% £3,400.38 52 £1.70

01/01/2018 31/12/2018 2018 0.20% £3,402.08 52 £6.80

01/01/2019 31/12/2019 2019 0.05% £3,408.88 52 £1.70

01/01/2020 05/06/2020 2020 0.05% £3,410.59 23 £0.75

06/06/2020 31/12/2020 2020 0.01% £3,411.34 29 £0.19

01/01/2021 31/12/2021 2021 0.01% £3,411.53 52 £0.34

01/01/2022 31/05/2022 2022 0.01% £3,411.87 21 £0.14

01/06/2022 09/10/2022 2022 0.10% £3,412.01 19 £1.25

10/10/2022 22/11/2022 2022 0.35% £3,413.26 6 £1.38

23/11/2022 31/12/2022 2022 0.50% £3,414.64 6 £1.97

01/01/2023 08/01/2023 2023 0.50% £3,416.61 1 £0.33

09/01/2023 05/03/2023 2023 0.60% £3,416.93 8 £3.15

06/03/2023 16/04/2023 2023 0.70% £3,420.09 6 £2.76

17/04/2023 10/06/2023 2023 0.75% £3,422.85 8 £3.95

12/06/2023 09/07/2023 2023 0.80% £3,426.80 4 £2.11

10/07/2023 20/08/2023 2023 0.90% £3,428.91 6 £3.56

21/08/2023 25/09/2023 2023 1.10% £3,432.47 5 £3.63

26/09/2023 31/12/2023 2023 1.30% £3,436.10 14 £12.03

01/01/2024 26/04/2024 2024 1.30% £3,448.13 17 £14.65

£95.38

so still arrive at 95.38 which is what they paid to me last week 

Those are no doubt the interest rates in the account that they held the money.

I'd respond saying as such, and that although you appreciate this is the interest that have accrued over the 20 years, they need to be paying you the interest rate that YOU would have accrued over the 20 years in your own savings account, which is essentially what you have missed out on. I'd then send a copy of your own bank account interest rates over the 20 years with your own calculation and say that this is the amount they need to pay. I'd be quite assertive here as it's not your fault they kept it in such a low interest account.

Thankyou Pinkshoes x great idea to challenge this for the reasons you say … I’ll try to build an email around this suggestion.   Your thoughts and ideas are well worth exploring 
I’ll try to put an email together with some of the great suggestions 

Sea_Shell

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

pogg000 said:

Don't calculate on saving rates, use borrow rates.


As this  is what you have lost.

I agree.   You should calculate it based on what additional interest you've PAID, not what you might have earned.