Interest claim clarification?

[gazza]

Hi All,

In the FAQ's, step by step guide part 2 it talks about claiming interest back.

So, do I understand this correctly...when you send the letter before action into the bank you don't mention interest incurred other than from being in overdraft.

So are you saying that one can only claim interest if the case goes to court(not including OD interest)?

Because up until now I was under the impression that we could claim all interest on top of the actual charges...

Cheers

Gaz

[gazza]

bump!

 

Can anyone comment?

I am waiting to post my letter before action....

Cheers

Gaz

[alanfromderby]

You are correct in your reading of the FAQ's - I gather that the interest is claimed within the regulations of the County Court. Therefore until the action escalates to the CC Summons stage it should not be added.

[Bookworm]

To clarify:

 

You can reclaim the interest that is accrued from having charges added to your account. In order to do so, you will have to work out what part of the interest is due to the charges, which part is regular interest (which you obviously can't reclaim). Tricky, and even more so when they are at different rates. There's no standard formula, so you'll have to do the maths yourself if you want to go down that route.

 

If and when you get the county court claim, you are then legally allowed to add 8% to the charges.

 

Hope this clarifies things.

[gazza]

Thanks for the replies.

 

So just to be absolutely clear (sorry for being a bit fick)...

 

In the letter before action, you just mention the actual charges plus any OD interest?

 

Therefore if it is settled out of court, you can only claim the charges plus OD interest?

 

 

A thought I've just had...if you are writing threatening legal action, why can't you add the interest that a court case would award? To me it seems the same as taking them to court for the actual charges (that a court would hopefully award)??

 

I think I am confusing myself...

[jonni2bad]

I am just wondering if you are getting confused by 2 types of interest...

 

When you issue a court claim, you claim 8% interest on your charges, irrespective of being simply overdrawn, or over the limit, when these charges occured.

 

The point which seems to confuse some people regarding the claiming of interest is in relation to claiming back the part of your overdraft interest that occured simply because of those charges... i.e.,

case 1 - you are overdraw by £350, the interest charges would have been, for example only, £2.38

case 2 - charges add another £76, making you overdrawn by £426, and the interest actually charged that month is £2.89

 

You could, in that case, claim back the difference of £0.51

 

I hope that helps you....

[gazza]

Thanks everyone!

My letter's before action will be going in on Monday (without the 8% interest. I'm afraid I can't be bothered to work out any OD interest extras).

 

We (joint accounts) will be asking for £3,418 back from Abbey and £296 from Halifax.

With £2353 and £770 from Abbey to be asked for after the first claim is sorted (to keep my Abbey claims below the £5k court threshold).

Cheers

Gaz

[Janet-M]

You do not ask for the 8% interest until you have to file a claim in court .

[gazza]

Gotcha!

Cheers

[gazza]

This topic was closed on 03/07/19.

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