gsb v Nationwide

[luckman]

If they took £30 as a penalty from you and we assume it is accepted that it was your money and they shouldn't have taken it then it is only right that you can claim interest on that money which you could have earned if you still had that £30.

 

Contractual Interest is saying that in your Ts&Cs it says if you make an unauthorised overdraft then they will sting you for 24.9% per annum. As the Ts&Cs do not specify that it only applies to unauthorised drawings on your part then by reciprocity you should be able to charge them interest on their unauthorised taking of your money at the same rate.

 

Aternatively you can ask the court to make them pay interest under Section 69 of the County Court Act 1984. This will pay you 8% per annum on that £30 from the date they took it.

 

It makes no difference in this respect whether the account is always in credit or overdrawn.

 

If it was overdrawn you can reasonably argue that it was £30 overdrawn due to them taking the money. You would have had to pay interest if the account was overdrawn, therefore you should be able to claim the proportion of interest that you paid which was due to the £30 which they took. This again you could claim at either their contractual rate of 24.9% or the Section 69 rate of 8%.

 

From my experience it appears Nationwide pay at 8% and indicate they will defend against the 24.9%. Its your choice if you want to fight for the higher rate or not. Other threads have reported winning the full 24.9%.

 

Hope that helps.

 

Dik

[gsb]

Thankyou ... as you've probably gathered I've been struggling with this one!!!

 

Very helpful ... you must be from the same planet as me!!

 

All because the lady .....

[bottomburp]

deleted

[gsb]

Thank bottomburp .... inspiring name by the way!!

[dollies01]

I do hope for everyones sake that negative comments like this don't put people off trying to help others, that struggle with the concept.

[Garu]

Hi GSB.

 

Simply put, we have two "parts" to a claim.

 

1) The money they charged you, we know this is unlawful and obviously it's clear cut you want it (deserve it!) back.

 

2) While they had your money, they were earning interest on it, you were not. You have two options to claim this interest back:

 

2a) Wait until the court claim, and request the recognised 8%, this is "common" on debt claims through the courts.

 

2b) Take a look at your T&C's for the flexaccount, they say *if* you use unauthorised funds then they have the right to charge you 1.870% per month. Now, regardless of the state of your account, the charges they took were unlawful, therefore they were unauthorised by yourself. Therefore, in fairness and reciprocity, you can see the sense in charging them exactly the same interest rate for unauthorised use of your funds.

 

The rate you decide to charge them on use of your money is up to you, but bear in mind you are claiming interest on a debt owed to you, not lost \ potential interest if they had not taken your money.

[gsb]

Thankyou guys ... I will let you know how I get on.

[gsb]

Notification of receipt of SAR arrived this morning ...