109,000% interest?!

[disgruntledofcornwall]

OK, here's a question...as no one is looking at A&L threads much these days, as the A&L od is "interest free" and I can't find a contractural rate of interest for exceeding the limit like other banks have, started me thinking about how to calculate the APR for court.

 

What the bank does is charge £5 per day you are OD. As the contract is reciprocal, I think I should be able to charge the same.

 

Thing is, tried to calculate the apr based on £5 per day on one £25 charge. Per month this gives an APR, based on 150 in charges of....

 

 

109,000%!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!

 

So...how do I express the contractural interest? At 150 per month based on the £5 a day, (for all charges or for each charge) or, er, at the (my calcs) 109,000% compound interest and per charge or just the unit cost per day on all charges, i.e., £5 per day since the first charge flat rate.

 

I have to admit, even I am staggered!!! But at £150 per month for a £25 charge, that is what the APR works out to. I think I need to lie down....

 

I am doing very well so far with A&L and want to try the reciprocal interest argument.

[disgruntledofcornwall]

Still wondering on this, I think I will take the approach of £5 per day for the entire amount over the period they "borrowed" from me.

 

Then add an and/or section to the POC requesting the judges opinion of what he or she thinks is fair and reasonable with all the options.

 

I am surprised no one has any thoughts on this though, at least it makes me feel slightly better when no one else has a clue either