FOR MODS & ADMINS - why I do not advocate trying to claim charges interest.

[Movingon]

Guys -

 

read THAT and tell me it's worth trying to calculate charges interest... far as I'm concerned any estimate we make is going to be WILDLY innaccurate and challengable.

 

I therefore advocate taking any reference to charges interest out of the template letters... it's just too much of a minefield.

[Michael Browne]

I agree, not only because of the complexity and possible wild inaccuracy, but because it also causes more confusion than any other single issue.

 

People are constantly getting muddled between the interest on charges and the 8% interest and in many cases assuming they are one and the same. It certainly would make it simpler if there was only one type of interest

 

Having said that, banks haven't disputed peoples interest calculations and have essentially just paid up.

[Hedgehog]

I'm sure I read some people had just added the lot and got it back regardless...

 

I have asked for roughly 2/3rds back... although the calculations seemed wildly inaccurate the end result seemed pretty fair..

 

I haven't seen one thread of a bank questioning this.

 

how about saying...add all interest charged, and claim for 65% of it, thats a fair amount...not claiming all... just the bit that I thinks mine!!

[rmoody70]

Just got all my OVERDRAFT INTERST back - £ 96 over six years from HSBC. I had itemised it from statements on a seperate sheet and added it to the claim. Nice

 

2300 - Full payback from HSBC

[Movingon]

Just got all my OVERDRAFT INTERST back - £ 96 over six years from HSBC. I had itemised it from statements on a seperate sheet and added it to the claim. Nice

 

2300 - Full payback from HSBC

 

That's very nice for you; but you were lucky the bank didnt deny you that outright... charging the interest on the main part of your overdraft is not unlawful and therefore you are not entitled to claim it back. You're only entitled in Law to claim back that portion of the interest which was directly pusuant to the unlawful charges.

 

I don't think, to be honest, this site is about profiteering at the banks' expense. It's more about reclaiming what was taken from us unlawfully and getting the banks to ADMIT it's unlawful.

[reload]

Have to say I agree too - whenever someone asks about O/D interest I usually tell them that, quite simply, it's more often than not more hassle than it's worth, and generally speaking requires a degree in 5 dimensional mathematics to work out to any degree of accuracy.

[bram stoker]

I have to agree that an estimate is difficult.

 

The spreadsheet I designed does not take into account any interest rates. It splits the interest charges between accumulated penalty charges in the overdraft and actual overdraft spends. I agree it is an estimate, but if they have taken £1,000 from you in cumulative penalty charges, then any interest on an overdraft less than than will relate to the penalties alone.

 

Have you seen the workings in my spreadsheet Stonelaughter? There are a lot of notes too on the first page.

[Movingon]

I saw an early version but to be honest couldn't figure out what to put in some of the columns... I think one was called "interest date" and I couldn't find an explanation of what that was. I'll have another look when I get a moment; today's a busy day unfortunately!

[quin1962]

I dont agree that you should forget about the interest the banks have taken off you. They have illegally charged you in the first instance and by only claiming back the charges plus the 8% is not a fair reflection of how much you are out of pocket. I did my interst calculations myself with Excel. I did it by the number of months and found out the banks monthly interest rate (monthly) and times it by the number of months since the charge.

So for example if you were charged £20 in July 2000 then times that by 1.22% (my banks monthly interest charge) times 60.

20 x 1.22% = .244 x 60 = £14.64. This is a very simple way of doing it and does not include times when you are not overdrawn but it is a good basis to start with.

[bram stoker]

I dont agree that you should forget about the interest the banks have taken off you. They have illegally charged you in the first instance and by only claiming back the charges plus the 8% is not a fair reflection of how much you are out of pocket. I did my interst calculations myself with Excel. I did it by the number of months and found out the banks monthly interest rate (monthly) and times it by the number of months since the charge.

So for example if you were charged £20 in July 2000 then times that by 1.22% (my banks monthly interest charge) times 60.

20 x 1.22% = .244 x 60 = £14.64. This is a very simple way of doing it and does not include times when you are not overdrawn but it is a good basis to start with.

This is slightly incorrect, as you could come up with a figure far exceeding any interest you have actually been charged on your account, especially if there are periods where you were not overdrawn.

 

Please be very careful when using this type of calculation.

 

In my spreadsheet I start with the figure actually charged to the account and apportion it between the accumulated penalties and actual overdraft.

[Guy]

I only went for the standard 8% on my bank claims.

For my crdit cards i calculated the rate and simply dropped that figure into the spraedsheet in place of the 8%. Using the assumption that teh spreadsheet calculates 8% per year on the penalty fees from initial charge to present day. My cards were 15.75 and 22% so i split down the charges and calculated the total interest on teh charges only. If this is over simplified then im sure someone will shout but it appeared to work out pretty damned close. (i did a quick check month on month)

 

I am now claiming this all back from MBNA. If (when) i do a money claim i will not add a further 8% just leave the total as is in my LBA.

 

So i am actually claiming my penalties and the interest on those penalties nothing extra no profiteering just MINE.

[quin1962]

Thank you .... I have looked at your work now and understand where I have made a slight error. My two claims are in now but my girlfriend will be heading down this root as well and will get it right for her claims. Again thanks.

[bram stoker]

There are many ways to estimate and calculate the interest on penalties. So long as you are all careful and can justify your calculations, there won't be a problem. After all, what can the banks do? Re-calculate it for you and pay you the correct figure? So long as they don't adjust the penalty charge claim, then fine, I say.

 

You MUST make sure though, that you do not claim for more interest that they charged you in the first place. That's the most common error I can see when people try to make their calculations in this area.

 

It IS complicated. Just be careful, but if you're confident, then claim it.

 

If you need anyone to check your calculations, there are many of us here willing to give you a hand.

[meagain]

Worth noting that it if the bank disagrees, it is your responsibility to back up your numbers. If, however, the bank disagrees, having seen your spreadsheet and calculations, it is rather their responsibility to provide a more accurate figure.

 

As Vampiress has said, do things properly and you'll do just fine.

[deemacperth]

Actually there is a simple workaround.

 

I changed the letter slightly including the following. This relates to the Halifax.

 

What I require

I calculate that you have taken £3408. Further to this figure, I am claiming 10% £340.80 as a figure for the unauthorised interest rate charges I would have incurred on top of these fees. I have had to estimate this figure as the statements you have provided are not sufficient to calculate this figure.

If this figure is incorrect then the onus is on yourself to disprove this figure by providing me with the interest you have grossed from these unlawful charges. Total claimed £3748.80

 

As my fiduciary, it is their responsibility to provide me with a financial breakdown as requested. If it goes to court I will argue that I stated in my DPA I wanted a list of transactions and charges, if they haven't provided the interest figure then they haven't complied with the DPA. I have given them two attempts to provide me with a figure for interest (1st request and LBA) so the court will see I have not been unreasonable.

 

I have used 10% as I have had this account for 5 years and consider it a fair estimate.