Why is no one claiming the contractual rate of interest???

[Boobaby]

Aaaaaaaaaaaaaaaarhhhhh - I DON'T UNDERSTAND!!!!!!!!

I am talking bank charges are you? who is Ikano? The only interest payments are those incurred by my going over my overdraft limit and they amount to £49 in total in three years. There is no debt balance, there is an overdraft but the charges were paid as and when money was credited to the account. I feel so stupid right now, all I really need is someone to tell me whether or not I should be claiming this interest as I was told on a different thread that those interest charges were non reclaimable and that the only interest to be claimed is at the court stage.... SORRY!!!

[Glenn UK]

Boobaby

 

You can reclaim charges + interest paid on those chagres + interest at the contractual rate on your LBA (or interest at 8% if you would rather when it goes to court).

 

I believe this is correct.

 

HTH

 

Glenn

[Boobaby]

Boobaby

 

You can reclaim charges + interest paid on those chagres + interest at the contractual rate on your LBA (or interest at 8% if you would rather when it goes to court).

 

I believe this is correct.

 

HTH

 

Glenn

Thank you

Thank you

Thank you

Thank you

That's what I was hoping someone would say as that's what my interpretation of the interest claimed was.

I lOVE YOU!!!!! oops gotta keep a check on these emotions all over the shop tonight - and now

[JonCris]

For goodness sake!

 

It is correct. If you paid a penalty charge of £50 plus their unauthorised borrowing interest rate 3 years ago add compound interest over the whole 3 years equivilant to their unauthorised borrowing interest rate quid pro quo!

[Boobaby]

For goodness sake!

 

It is correct. If you paid a penalty charge of £50 plus their unauthorised borrowing interest rate 3 years ago add compound interest over the whole 3 years equivilant to their unauthorised borrowing interest rate quid pro quo!

Sorry we can't all know everything, that's why I'm using this site!! Just want to make sure I do it properly

[NitrousOxide]

For goodness sake!

 

It is correct. If you paid a penalty charge of £50 plus their unauthorised borrowing interest rate 3 years ago add compound interest over the whole 3 years equivilant to their unauthorised borrowing interest rate quid pro quo!

I'm going to do this too.

[NitrousOxide]

Why can't we just say, you took my money I'm going to charge you what you would have charged me. Full stop?

You took £20 5 years ago so I'm going to charge you interest on money that is mine at the same rate?

[JonCris]

Why can't we just say, you took my money I'm going to charge you what you would have charged me. Full stop?

You took £20 5 years ago so I'm going to charge you interest on money that is mine at the same rate?

 

That's precisley what you are doing COMPOUND!

[Mindzai]

This all sounds very interesting. I'm assuming that charging them compound interest at their own rate is perfectly within the realms of what BF is discussing? If so this is likely the route I will be seeking to take. I have already sent out a prelim but I'll send another one as the extra interest on a £2K claim will be well worth the wait.

 

One question though - is there a spreadsheet available that will calculate compount interest for me? Altrenatively I work with spreadsheets daily for my job, so if someone could help me out with the maths involved I'd happily make something for others to use.

[Glenn UK]

try the templates library there are some spreadsheets in there and they calculate the compund interest if you change the 8% to whatever figure you intend to claim.

 

HTh

 

Glenn

[NitrousOxide]

You could just alter the 8% spreadsheet.

You also need to find out how much they charge you.

I'm going to do it on my C1 claim. They charge 1.374% monthly for cash advance and 1.503% monthly for purchases. God knows how I would actually work it out.

EDIT: 16.488% APR? Is that right? What would that be as a number in the spreadsheet?

[Mindzai]

Oh OK, so does the 8% spreadsheet charge compount interest? Sorry if I'm being dense here, but I thought it applied 8% to the value of the charge from when it was taken to now, I didnt think it worked it out as compound?

[Glenn UK]

I think we need to make sure that were both using the same terminology.

 

compund interest is simply the adding of interest to the original 'stake' then adding interest on top of that, the process is repeated on the basis of the interrest charge rate and period.

 

This i what the spreadsheet does when it charges interest at 8%. you simply replace 8% with your specific value.

 

The other thing we shold think about is if the bank and cc spreadsheets work the same, ive been using the bank sheet ansd havent even looked at the cc sheet.

 

So on the first page of the bank sheet you add the charges you paid plus interest you paid and theyre totalled up, simnple as that.

 

On the interest page you either take 8% which is compund interest as i have defined it above. if you wish to relpace it with the contractual rate then do it and thats compund interest.

 

If you want to work out the precise amount of interest paid on a cc and try to work out how that has been compunded over the period of your account then i think you need to enter every transaction on your account along with all the interest rates charged at various times coupled with all the interest charged as well.

 

If you do this then i guess if you have a mind to you could work out how that very first couple of quid of interst turned into that thousands pound debt you owe now.

 

Sadly i think thats a mamoth task and in reality is beyond my excel skills. Oh and FWIW i think by the time ive added their cash borrowing rate mine will amount to a fair whack anyway,

 

JMHO

 

Glenn

[JonCris]

Its called reciprocity of contract....... quid pro quo

Whatever they can do to you you can do to them

[rogerebaker]

Ive spent a few hours toting up my sons charges and decided to try and work out manually the interest they charged on the charges.

 

He was charged a total of £470 since 2002

 

I worked out the interest to be £350

 

so its nearly doubled the claim

 

I know its a long job and probably a bit advanced for the average Excel user like myself but an old fashioned calculater , pen and paper did the trick and its worth it.

 

Happy days

 

1st letter to go today.

[JonCris]

Ive spent a few hours toting up my sons charges and decided to try and work out manually the interest they charged on the charges.

 

He was charged a total of £470 since 2002

 

I worked out the interest to be £350

 

so its nearly doubled the claim

 

I know its a long job and probably a bit advanced for the average Excel user like myself but an old fashioned calculater , pen and paper did the trick and its worth it.

 

Happy days

 

You don't tot up the total charges THEN add interest, that comes later. You take each charge, when it was taken then calculate the daily contractual rate up until the day your calculating it (you can add daily interest beyond that date later)

 

I suggest if he had charges taken as far back as 2002 you have probably miscalculated

[BaldyBaldwin]

i know i am a dimbo with all this , and i have read this thread from start to finish, but just to be 100% clear in my (slow) mind that what i am doing is correct before i enter it on a legal document can i ask a couple of simple questions

 

1/ do i just change the amount of interst on the spread sheet from 8% to 16.9% ( citicards rate) ?

 

2/ do i change the wording on the N1 form, under the section of VALUE to something like" plus daily interest at 16.9% from date of issue at settlement " and then add something like " interest charged at 16.9% due to reciprcocy of contract"

 

i would like to try this one on with citicards as they seem to be a nasty, aggresive bunch.

 

as usual, any help always appreciated

[Mindzai]

Yes if anyone has an idea of qa good way to phrase this in correspondence that would be very helpful.

[Glenn UK]

i know i am a dimbo with all this , and i have read this thread from start to finish, but just to be 100% clear in my (slow) mind that what i am doing is correct before i enter it on a legal document can i ask a couple of simple questions

 

1/ do i just change the amount of interst on the spread sheet from 8% to 16.9% ( citicards rate) ?

 

2/ do i change the wording on the N1 form, under the section of VALUE to something like" plus daily interest at 16.9% from date of issue at settlement " and then add something like " interest charged at 16.9% due to reciprcocy of contract"

 

i would like to try this one on with citicards as they seem to be a nasty, aggresive bunch.

 

as usual, any help always appreciated

 

Not sure that i know much about form filling but just a point, you state 'plus daily interest at 16.9%'

 

i think you mean accruing interest daily at a rate of 16.9% per annum. Id like to charge 16.9% per day but i think it would be kicked out sadly.

 

HTH

 

Glenn

[hagenuk]

Yes if anyone has an idea of qa good way to phrase this in correspondence that would be very helpful.

 

Try adding this or something similar.

 

I calculate that you have applied £xxx.xx in levies and further, I also claim interest at a rate of 22.9% as set out in the attached list of charges. I believe this rate to be justified under the principle of mutuality and reciprocity, and is based on your Cash Advance interest rate that would be applied under the terms of the above mentioned account. Therefore the total amount owed as of today’s date is £xxx.xx.

[JonCris]

Hageuk:

 

Great addition to add & seems just right.

 

kevinlufflum:

 

You need to check your card terms & conditions which should be on the back of your statement which will show their unauthorised borrowing lending rate which I strongly suspect is much more than 16.9%. Probably more like 25% anything upto 35%. As it is usually the highest rate quoted look for that & that's the one to go for

[BaldyBaldwin]

many thanks to you all for the advice, unfortunatly i have already used the wording " Plus daily interest at 8%...." on 2 claims i have recently filed at court, oh well, will just have to see what happens there, but will revise it on my other claims.

 

Does the term unauthorised borrowing apply to the unlawful charges they have applied to my account??

[NitrousOxide]

Hi,

Capital One is 34.9% APR!!

[matd]

The interest rate charged on my account if I went into unauthorised overdraft today would be 2.05% per month/27.5% AER (variable).

I don't know what the contractual percentage would have been when the charges were made 3-6 years ago; do I charge the present-day percentage (i.e. if the charge used to be 18% in 2002, but in 2006 that has increased to 27.5%, I charge the greater amount)?

 

Related note - very confused by the difference between AER, APR and the monthly/daily percentage rate: monthly 2.05% x 12 is not = to annual 27.5%!

Can anyone explain in simple terms?

[JonCris]

Charge the present day interest & let them argue about it later but the probably won't as its too difficult for them to get their heads round. Also they have to turn up to court to defend their position that you might be claiming too much don't they!