Interest calculations

[alexcraw]

I checked out the spreadsheet above an for the 8% interest, it reads alot more (charge of £15 = £6.01). I take it that this calculation is not as straight forward as this:

 

Charge = £100

Interest on Charge = £8.

 

Can you explain this calculation and how we are able to claim this amount please?

 

Thanks

 

Alex

[lee6370]

you need to work out the daily rate (8% divided by 365) then multiply that by the number of days since the charge was taken.

 

and yes in some cases it's a lot, now think about how much interest they have added, on an overdraft with a rate of 17.9% that a lot of interest they have added to your charge.

[Michael Browne]

Under S69 of the County Courts Act you are allowed to claim interest of 8% on your claim, but only once you have filed at court.

 

This is calculated on each charge separately from the date that charge was made up to the date you file a claim. So the interest a charge of £20 made 300 days ago would be £1.31 and a charge of £35 made 60 days ago would be 46p.

 

By entering the charges and dates, the spreadsheet automatically calculates this.

 

Hope that makes things a little clearer

[alexcraw]

With you now. I had calculated my first charge with interest and got a shock.