Interest calculations

[BankFodder]

Forgive me I am wrong but I get the impresson that quite a few people seem to think that they can claim 8% on their charges when dealing with their bank.

 

This would be wrong

The 8% is something that the court allows you to claim if you go to court.

 

This means that when you deal with your bank, you ask for the return only of money which they have actually taken from you.

 

This means:-

Charges

Interest they have actually charged you on those charges - if the charges have put you into overdraft.

If the charges have not put you into overdraft then you have not paid interest and so you cannot claim it back.

 

When you draft your claim form, you will have to do a separate calculation for charges + interest actually paid - Total

PLUS 8% (Simple) daily on the charges to the date of the claim

and that daily rate continuing.

[BankFodder]

Forgive me I am wrong but I get the impresson that quite a few people seem to think that they can claim 8% on their charges when dealing with their bank.

 

This would be wrong

The 8% is something that the court allows you to claim if you go to court.

 

This means that when you deal with your bank, you ask for the return only of money which they have actually taken from you.

 

This means:-

Charges

Interest they have actually charged you on those charges - if the charges have put you into overdraft.

If the charges have not put you into overdraft then you have not paid interest and so you cannot claim it back.

 

When you draft your claim form, you will have to do a separate calculation for charges + interest actually paid - Total

PLUS 8% (Simple) daily on the charges to the date of the claim

and that daily rate continuing.

[babylon]

Thanks for the confirmation.

 

I have submitted a letter to the woolwich yesterday, and at first , I wans't too sure about that, but It sounds rather self explainitory when you say it is enforced by the courts.

 

I assume that the Banks would not pay any interest back if they make an offer (goodwill gesture).

 

However, if you are forced to make a claim in the courts, then would the banks include the 8% interest if they offer a settlement?

 

If not, are you within your rights to refuse the settlement figure and ask for more?

 

Andy

[babylon]

Thanks for the confirmation.

 

I have submitted a letter to the woolwich yesterday, and at first , I wans't too sure about that, but It sounds rather self explainitory when you say it is enforced by the courts.

 

I assume that the Banks would not pay any interest back if they make an offer (goodwill gesture).

 

However, if you are forced to make a claim in the courts, then would the banks include the 8% interest if they offer a settlement?

 

If not, are you within your rights to refuse the settlement figure and ask for more?

 

Andy

[BankFodder]

It is up to you to negotiate your settlement. They will pay you whatever you agree with them.

If they don't offer your whole claim including the 8% then you just say no and go into court.

You can refuse anything which is less than your claim.

[BankFodder]

It is up to you to negotiate your settlement. They will pay you whatever you agree with them.

If they don't offer your whole claim including the 8% then you just say no and go into court.

You can refuse anything which is less than your claim.

[Robert_Brenchley]

If the banks charge me interest when I borrow from them, I think it's reasonable for me to ask for interest when they unlawfully 'borrow' money from me. If the courts will allow interest, then it's hard to see why it shouldn't be included in the original claim. If I owe money for a considerable time, I'm likely to face a demand for interest, which will be backed up by the courts.

[Robert_Brenchley]

If the banks charge me interest when I borrow from them, I think it's reasonable for me to ask for interest when they unlawfully 'borrow' money from me. If the courts will allow interest, then it's hard to see why it shouldn't be included in the original claim. If I owe money for a considerable time, I'm likely to face a demand for interest, which will be backed up by the courts.

[BankFodder]

This topic was closed on 03/05/19.

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