Offer from Capital One

[Rumblestrips]

I have received an offer from Capital One to refund all my charges of £480 plus £226.33 in County Court Interest but not the contractual interest which I calculated to be £744.56. They stated that this figure is wrong yet I deem it to be correct. I know its a bit high but the account is from 6 years ago and I used the correct spreadsheet so it should be right.

 

Should I continue to claim for contractual interest and what are my chances of getting it?

 

Also I wanted to claim my costs for letters etc. How would I go about negotiating this as there is no direct telephone number on the letter.

 

Thanks

[doo]

How far had you got with your action, ie prelim or LBA?

[Rumblestrips]

I had submitted my claim in the county court against Capital One. That was about 3 weeks ago and they have replied with this offer.

 

I would like to know the likelihood of getting contractual interest refunded and also about the cots for time spent writing letters etc.

[millymollymoo]

Hi kathryn,

 

No you do not have to except this at all, unless you want to that is!

 

It is your claim and they are not paying the full amount you have claimed. This has been talked about alot on CAG llately as it is a new angle for the credit cards/banks . This is exactly what they want people to accept and then leaving them to argue just about contractual interest only and not have to disclose their charges in the court. Very sneaky tactics.

 

People on here have had the WHOLE lot back + contractual:) Read up!

 

Concerning rejection to their offer.

 

Go here and use letter 4. Read the thread first.

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/25716-rejecting-offers.html

 

By the way I am at same stage with no offer and I WILL NOT accept anything less than the lot!!! They are trying this on with everyone at the moment.

 

 

 

 

Milly x:)

[peaches' mum]

Hi there

 

You guys seem to know exactly what you are talking about I on the other hand am totally confused. I have received my statements from Capital One but am not sure what to enter onto the spreadsheet, that is if I even have the right spreadsheet! Would you mind assisting me?

Thanks

Peaches' mum

[Rumblestrips]

Thanks milly, I want to pursue the contractual interest but looks like I am fighting a losing battle. What do you think? Has anyone else received a defence like this?? Any advice will be greatly received.

 

This is their defence that I received from the court this morning:

 

Capital One Bank (Europe) plc received the claim for the total sum of £1344.56, which is in connection with the default fees and interest we have charged to Miss Kathrynlf’s account.

 

Capital One deny the fees are unlawful and they are detailed in Miss Kathrynlf’s terms and conditions and in her customer welcome pack (er, right). Our fees are based on the costs we incur when a customer breaks their contract by making a late payment, failing to make a payment or goes over their credit limit. The fees are only levied when a customer breaches their contract in this way and can be avoided if payments are maintained and the account kept within the credit limit.

 

Capital One has acted in accordance with the terms of Miss Kathrynlf’s credit agreement throughout this matter. Also, after reviewing her request for £744.56 to cover the interest, we can confirm that these calculations are incorrect.

 

All default fees charged to any account are always charged at the purchase interest rate. The total amount of purchase interest we have ever charged to Miss Kathrynlf’s account since it was opened in June 2000 is £80.45. This amount includes the interest on all of the purchases and only a very small portion of this figure has been charged on the default fees. On the basis of the above, we cannot agree to the proposal of refunding the sum of £744.56 to cover the interest. (what about mutuality & reciprocricy? They have had MY money for 6 years!)

 

Along with the above, we have also refunded the default fees totalling to £480.00, as requested and the court fee of £120. Miss Kathrynlf has requested £226.33 interest, which she is claiming under section 69 of the County Courts Act 1984. Therefore, we have also refunded this amount back to the account today. (They haven’t refunded any monies yet & acc is closed)

 

However, we have today refunded on a no admission of liability basis, the total amount of interest charged to Miss Kathrynlf’s account to the sum of £80.56. This will cover the interest we have charged on the fees. It also means that Miss Kathrynlf has held an account with us since June 2000 without having to pay interest for any of her purchases.

 

This brings the total amount that we have refunded to £906.78. These refunds have been made purely as a matter of goodwill, on a no admission of liability basis and in full and final settlement of claim number ********.

 

As Miss Kathrynlf’s account is settled, we have arranged to send her a cheque for the above amount.

 

Capital One will now defend the claim on the basis that the correct amount has been paid in full. (REALLY??? Can they do that?)

[rougesept]

I think this is their new plan for all contractual claims. I would keep going and have my day in court (if it got that far). This has happened to someone else in the past week or so - two days later they agreed to pay contractual interest? Can't remember who it was, I'll try and find it for you.

 

Rouge

[TANZARELLI]

I think a stiff letter to them regarding the defence may be called for also a copy to the court. I would try to break down the defence and argue the bits you feel you need to. Post letter prior to sending for comment. I am off to work now but will see if I can find some wording later, unless anyone else can help with this.

[pmhcfc]

I think a stiff letter to them regarding the defence may be called for also a copy to the court. I would try to break down the defence and argue the bits you feel you need to. Post letter prior to sending for comment. I am off to work now but will see if I can find some wording later, unless anyone else can help with this.

 

A few people going this route at the moment, I'm on the same road as you and will be sticking with contractual rate of interest....There's a letter on here from someone who had the same thing a few weeks back...She sent reply to cap1 and they rang her next day and paid it all back in full (thats the contractual)

 

Paul

[natwesttookmymoney]

Hi, Kathryn

 

I know you're not the only person to whom Capital One has paid charges plus statutory interest. I posted a suggestion on another thread only the othe day - I think it was a GE Capital thread - but i can't remember where it was, for the moment.

 

I know you want to get all the money but I must confess to feeling a little less than totally confident about this - and I'm ready to receive several rounds of armour-piercing ammunition and be shot down in flames!

 

Here's why.

 

If the total amount of interest you've been charged is, as Cap One says, £80.45, then the sum total of your loss is the charges (£480) plus £80.45 interest, being £560.45. They've paid you that, plus £226.33 statutory interest at 8%. You make the point that it's your money they've had for 6 years, which is entirely valid. However, if you'd had it during that period and put it on deposit, where would you have got a return of 8%? I can't think of anywhere.

 

Do not, for a moment, think that I'm on Cap One's side: I'm not and you can look at other threads and posts I've made; they will confirm that I think we should stick the boot into these b*gg*rs as deeply and as often as possible. I am very much on your side and my concern is that your risk/reward balance may be slipping the wrong way.

 

There are other people taking credit card companies to court with authorised interest claims and I think they're doing the right thing: they've been continually charged interest and default charges and their demonstrable losses are quite clear and rather high.

 

It's entirely your decision but I felt that, rather than sitting on the sidelines and keeping my concerns to myself, I should do you the courtesy of voicing them. In your situation, I would seriously consider taking what you've got. It is a victory - a real, tangible, unqualified victory and it's only, BTW, in the last 2-3 months that the question of anything other than statutory interest has been raised. Proceeding further may be a risk, whose downside may be greater than you actually want.

 

That is just my very humble opinion.

 

Westy

[natwesttookmymoney]

Hi there

 

You guys seem to know exactly what you are talking about I on the other hand am totally confused. I have received my statements from Capital One but am not sure what to enter onto the spreadsheet, that is if I even have the right spreadsheet! Would you mind assisting me?

Thanks

Peaches' mum

 

Hello, Mum!

 

(I've always wanted to say that in public!)

 

When you get your statements, ignore the purchases, cash advances etc. You can't claim them back - much as we'd all like to.

 

What you're looking for is charges - default charges, maybe bounced DDs, 'management fees', referral fees, anything like that.

 

You enter onto your spreadsheet each one, with the date and the amount in the appropriate column. Don't forget to put the description in the left-hand column, too: that's important.

 

I have absolutely no idea if you're using the right spreadsheet. Which one are you using?

 

Best wishes

 

Westy

[natwesttookmymoney]

Hi, Kathryn

 

the response mentioned previously can be found here (http://www.consumeractiongroup.co.uk/forum/other-institutions/55863-son-steven4064-ge-money-2.html#post536389)

 

 

 

You will see it's a wee bit different from your situation.

 

Best wishes

 

Westy

[rougesept]

Hi Kathryn,

 

There was someone on here (Cap One board) only one or two weeks ago that was in exactly the same situation. I couldn't remember who it was and have looked but can't find it.

 

pmhcfc (4 posts above) refers to the same case so I didn't dream it! As pmhcfc says, they got the same offer as you, wrote a letter, and got a phone call next day to pay contractual in full. Can anyone shed any light on this?

 

Rouge

[millymollymoo]

Hi was it

 

http://www.consumeractiongroup.co.uk/forum/capital-one/59287-has-anyone-successfully-claimed.html

 

Stuflo

post 7, 17 and 20?

 

Milly

[millymollymoo]

Kathryn:)

 

I hate them:mad:

 

Is this bit correct?

 

The total amount of purchase interest we have ever charged to Miss Kathrynlf’s account since it was opened in June 2000 is £80.45.

 

 

 

What contractual rate did you charge them also purchase or cash?

 

 

 

Milly X

[TANZARELLI]

Hi westy,

I agree with some of what you say. As with all claims there is always an element of risk.

 

However I do think this is another ploy from the Banks and CCC's to get claimants to settle on there terms and not the claimants.

 

I too am considering claiming contractual on a couple of claims but am yet to send prelims as still looking into this. You are right to share your view on taking caution.

 

However, and please dont think i am arguing with you, i am merely discussing a point, but I think we should make it clear to the banks that we wish to settle on our terms, or why else would we bother to go for contractual in the first place? Would this be just to get our claims settled in the 3rd alternative.

 

I have had a settlement offer from C@p One which was for full charges, stat interest (as this was all I went for on this) and court costs. They think this is full settlement and have like kathryns defended on this basis. However I am going for the default removal as well. The court even wrote to me and said due to the content of the defendants defence do I wish to continue, answer, yes I do, as if I didn't I would be letting the bank win. I requested that they sent me an AQ and will be completing this asap. If i had accepted this offer I would not have given it my best shot.

 

Yes there are risks, and mine like others may backfire on me, but I am willing to take this further if not just to see what their response (C1) is.

 

Please don't think I am encouraging others to do something stupid, and I would suuggest that they seek further discussion on this before the next move.

 

Just as you say, my humble opinion, which is in part agreeing to your comments.

 

Sorry if that was a bit babbled, but tried to comment before and just as I was going to post my pc crashed again.

 

Tanz

[TANZARELLI]

Stuflo

 

My wife was issued against CAP 1, contractual interest of 27.9%. At first they wouldn't pay the COurt fee or the interest, wife sent another letter, they phoned the next day at 5.00p.m and said they would agree to pay the claim in full together with the contractual interest and court fee and the daily interest on top as a goodwill payment. They have said she should receive cheque in next 14 days. Result!

[natwesttookmymoney]

Hi, Tanz

 

Yes, I read Stuflo's posts (thanks, Milly). It was for about £400, including the interest, I note.

 

I guess my greatest concern is a possibility that there is a failure to understand the Equity principle. What we are seeking is restitution - to be restored to the position we were in before the unlawful activity. There's also room for some compensation, which is a kind of punishment of the perpetrators. But English law isn't about profiting. If you've been charged interest on the charges, then go ahead and get after them. I'm claiming authorised interest rate, while bearing in mind that some of the interest I have been charged has been at the unauthorised rate. I have been in overdraft and/or had a loan for pretty much the whole period - I've had an a/c since October 2000. So, the charges plus authorised interest are definitely demonstrable loss. In addition, I'm claiming statutory interest rate - the compensation for loss of benefit. So I'm seeking restitution and compensation. I have no problem with, and totally sympathise with, people in similar situations who are going for unauthorised rate on the whole lot. If I was starting now, that's probably the route I would go, too.

 

There is a danger that overclaiming - I've seen some people talking of claiming the rate they've been charged PLUS unauthorised on top - will all end in tears. The objective is restitution: if the claimant is seen to be seeking too much, then the claim could be struck down (unlikely, but possible in extremis), or the claim for additional interest could be lost. It's also possible that, although costs are not normally awarded in small claims, if the Court determines that the claimant has prolonged the process by turning down a reasonable offer, that costs could be awarded. The claimant wouldn't like that and it could be very dispiriting for newcomers and potential future claimants.

 

I wouldn't make a hard-and-fast rule about it: I'd strongly suggest that people look at their own situations and make a judgement. Restitution is what it's about: perceived profiteering won't succeed.

 

Thanks for the respect - it's reciprocated.

 

Best wishes

 

Westy

[TANZARELLI]

Thanks for the click Westy.

 

Its good to put both side accross. Only then can people decide what is the best course of action for them.

[Rumblestrips]

Its been a really interesting debate, thanks for all the posts.

Finally though I have made the decision to continue for the whole amount. Its out of a matter of principle now and I don't think I could rest if I didn't at least try to make a stand for what I feel is right and fair.

So... I am writing a letter to reject their offer and inform them I am continuing with my claim.

What contractual rate did you charge them also purchase or cash?

 

Milly X

 

I used the most recent one on my statements which was 20.45% APR.

[rougesept]

Good luck Kathryn, although I'm sure you won't need it. I'll follow your thread with interest as I'm just behind you in the process. I would (and will) take the same decision you have.

 

Rouge

[Rumblestrips]

Cheers Rouge, hope I've made the right decision. Heres the letter I am going to send. Does it sound ok to you?

 

RESPONSE TO SETTLEMENT OFFER

 

Dear Miss Wilson

 

County Court Claim number ********.

 

I refer to your letter dated 30th January 2007 in response to the court claim I have issued against Capital Once Bank (Europe) Plc for a total sum of £1344.56.

 

Your offer to settle does not include the £744.56 I am claiming in contractual interest. I believe I am entitled to claim this and upon this basis if you are not willing to pay this then I do intend to proceed to a court hearing without delay.

 

However, I am willing to settle this matter on the basis that you refund the charges you have taken in the sum of £480.00, contractual interest of £744.56 and the court fee of £120.00, making a total sum of £1344.56. As you have sent me a cheque for £906.78 this leaves a balance due of £437.78. I will not cash the cheque until I have received the remaining amount.

 

Once I receive this cheque I will notify the Court of the settlement to avoid taking up Court time.

 

I trust this clarifies my position.

 

Yours faithfully

Kathrynlf

[millymollymoo]

Along with the above, we have also refunded the default fees totalling to £480.00, as requested and the court fee of £120. Miss Kathrynlf has requested £226.33 interest, which she is claiming under section 69 of the County Courts Act 1984. Therefore, we have also refunded this amount back to the account today.

See the bit in red make sure you remind them that you stated in your POC that this applied to the judge to decide which rate was applicable and it was not for them to decide which rate to pick.

By the way,20.45% APR is this their purchase rate on their platinum? or cash rate on their premier visa? Just curious cos I charged purchase rate of 17.93% on their premier {premier visa }

Anyways good luck and not far behind you as in defence due!!!!! Bring it on!!!!

 

 

MillyX

[millymollymoo]

Cheers Rouge, hope I've made the right decision. Heres the letter I am going to send. Does it sound ok to you?

 

RESPONSE TO SETTLEMENT OFFER

 

Dear Miss Wilson

 

County Court Claim number ********.

 

I refer to your letter dated 30th January 2007 in response to the court claim I have issued against Capital Once Bank (Europe) Plc for a total sum of £1344.56.

 

Your offer to settle does not include the £744.56 I am claiming in contractual interest. I believe I am entitled to claim this and upon this basis if you are not willing to pay this then I do intend to proceed to a court hearing without delay.

 

However, I am willing to settle this matter on the basis that you refund the charges you have taken in the sum of £480.00, contractual interest of £744.56 and the court fee of £120.00, making a total sum of £1344.56. As you have sent me a cheque for £906.78 this leaves a balance due of £437.78. I will not cash the cheque until I have received the remaining amount.

 

Once I receive this cheque I will notify the Court of the settlement to avoid taking up Court time.

 

I trust this clarifies my position.

 

Yours faithfully

 

Kathrynlf

 

 

Actually ignore what I said it looks good to me:D

 

Milly X

[doo]

Good luck kathrynlf, am watching with interest, have just sent prelim to Cap One - also claiming CCI - and will definately see it through all the way if I have to, as you say it is a matter of principle.