Compound or simple interest prescribed term?

[Mike_hawk]

All set to claim redress for PPI on an old store card and am now flummoxed by an odd interest term in the recon agreement.

 

'We will charge interest on the account at 1.5% per month'

The APR is as follows... (blank, none given?)

 

'Interest will accrue on the account on a daily basis from the date of transaction until payment in full is credited to the account. Each month interest will be added to the balance on which interest is charged'

 

As its a store card there was an option for interest free purchases, ergo the term above (on which interest is charged)

 

Having managed to get the last 10 years of transaction history out of it (account is 12 years old) it appears from my calcs that interest was compounded yet the term is clear in that interest will only be added to the balance of the transaction.

 

I'm pretty sure I'll claim at current advertised APR but its now left me wondering if my agreement was for simple interest only at inception.

 

Does anyone have any ideas or suggestions on how to broach the subject with the creditor?

[dx100uk]

i'd use the cisheet at their apr

 

let them argue if they want to

 

don't foget if the card is closed

 

then close the ci on that date

 

and use the statint sheet for that figure till today

 

dx

[Mike_hawk]

Cheers DX

 

I suppose if it labours the point I could look at redress of compound interest for each and every transaction on the account.

[Mike_hawk]

Oh dear, I've upset it..... mentioned Armstrong v American Express and it's now asked for another shot at s.78 compliance!