Delayed refund of care home deposit

DIYGirlz

My mum died in December 2020. Her former care home retained the deposit until April 2025. I believe that they should pay statutory compound interest of 8% per annum on the deposit, as they have held it for a disproportionately long period of time. They say it was held in a non interest bearing account. I say that's their choice and is irrelevant. Thoughts? 

Keep_pedalling

Statutory interest for compensation is 8% simple interest not compound, but whether it applies here I have no idea. Why did it take so long? 

DIYGirlz

Keep_pedalling said:

Statutory interest for compensation is 8% simple interest not compound, but whether it applies here I have no idea. Why did it take so long? 

Thank you for clarifying - I assumed it would be compound to reflect the cumulative loss of access to this asset ie the "opportunity cost" forfeited by the fact that the home retained the deposit. (neither they nor I remembered about the deposit, myself because it was paid by my late father. Not sure why the care home forgot)

kipsterno1

Is this the same care home from you previous post and what was the final outcome in relation to the outstanding fees?

https://forums.moneysavingexpert.com/discussion/6370085/care-home-fees-outstanding-after-death

DIYGirlz

kipsterno1 said:

Is this the same care home from you previous post and what was the final outcome in relation to the outstanding fees?

https://forums.moneysavingexpert.com/discussion/6370085/care-home-fees-outstanding-after-death

yes these were settled