General Interest Info!

[Movingon]

OK - this is for them what is a bit confoozd, innit.

 

1. When you're adding up what they owe you...

You can, if you wish, also try to calculate the interest they charged you on the charges.

 

So for example - if, on 1st December 2002 you had an agreed overdraft limit of £200, and you were £70 overdrawn... then on 2nd Dec, a DD was refused which would have taken you over the £200 limit, and they charged you £30. If the overdraft interest rate was 15%, you would be charged £15 per year on the £100 overdraft balance. That's 4.1p per day. However, in your letter, you can only claim the 15% back on the £30 charge - so that's only 1.23p per day; from 2nd Dec 2002 until present day.

 

You will have to know the interest rate they were charging on 1st Dec 2002 and every day since... or you could try for an average...

 

Me, I just ignored it because it was too hard to work out.

2. When you file your claim in the court:

You can claim 8% interest per annum on each charge, under S69 of the County Courts Act. So, on a £30 charge, you will be able to claim 0.66p per day from the date of the charge to the date of the hearing. (8% of £30 is £2.40, divided by 365 days in a year is roughly £0.0066).

There are spreadsheets in the green "Bank Templates Library" to help calculate this stuff...

[andrew1]

I had a credit card where the interest was charged at 1.873 per month. 22.476% pa. starting in year 2000. The money used is effectively the overdraft ie 500 limit 450 used. Late payment fees £18. Returned payment ( cheq) £25 - Total charges £295up to 2003. Can I work out the interest on 1.873% and include that in my claim or do I have to leave it to the charges only and hope to get the 8%? innit!

[Movingon]

Credit cards mostly don't charge interest on fees, as far as I know; so you'd have to wait for moneyclaim day and claim your 8%...

[lee6370]

Some credit cards may not add interest to the charge but you can still claim it, let me explain.

 

If you have a £30.00 charge added, which takes you up to £100 on your card, even though you may only be charged interest on £70, if you pay the minimum then instead of reducing the £70 your paying interst on your reducing the £30 charge (they all say we will take our charge first, check the small print) so by getting a charge you pay more interest because it takes longer to reduce the £70 you're paying interest on.

[Movingon]

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