NEWB - I am going to claim

[chriszammett]

I've found this through Martin's Money Making tips and it makes interesting reading.

 

Over the years I'm sure I have accrued quite a large amount of charges - I estimate it must be over a £1000.

 

I've read the FAQs, so am fairly happy with what I need to do. I think I have all my statements from FD since I opened the account, so I shall be going through them with a fine toothcomb tonight (and a highlighter!)

 

One point I'm not sure about though is I'm not quite clear on the interest that we are claiming back, i.e. why are we claiming that back too? If someone could explain that simply for me it would be a help.

 

The other thing I'd be interested to hear is what level of success people have had from First Direct? Does anyone get a quick refund, many people go to court? I think if the offered me a partial refund I would probably be happy - does this happen often? I would guess that as more people do this the bank will start issuing quite standard letters refusing refunds.

[richardsimkiss]

Personally I'd be of the belief that if they are willing to offer you a partial refund, then they have already conceded that they don't have a defence. By offering you a partial refund they're just trying to close the case with as little loss to themselves as possible, if they are willing to offer partial, they will more likely than not be willing to offer you the full amount rather than goto court.

 

You can claim interest at 8% APR as allowed by s.64 the County Courts Act (1984). Try searching and read up on that section of the act Will give you a better/more accurate answer than I could

[Bookworm]

Just to clarify the interest part: You can only claim 8% once you issue claim, but you then calculate it from when charges were incurred.

 

I suppose the reasoning is that you were deprived of the interest the money taken from you could have earned in a savings account (for example), and you are therefore entitled to claim that back. In reality, if you were charged 30% unauthorised overdraft interest, it doesn't really even the field, but especially when it comes to 6 year old charges, it soon adds up.

[chriszammett]

Just to clarify the interest part: You can only claim 8% once you issue claim

 

I hope I'm not asking things in the FAQs, but to clarify this, I have my statements so will be using the letter in the library that has the figures the bank owes me and the excel document to work out the interest. So for every charge that I have incurred over 6 years, I work out the interest and put this final figure in the letter.

 

Thanks for the help guys.

[richardsimkiss]

The template letter has altered since i sent my first claim...

 

the letter in the library is for claiming the value of charges. If you were charged interest on these charges and are able to calculate it then you may be able to request this as well.

 

The interest calculated by the excel spreadsheet is to calculate the 8% interest that you are able to claim under the County Courts Act should you issue a claim to the courts, you cannot request this 8% in your initial letter.

 

Personally I have not tried to claim for any interest that I have been charged on the charges, which IMO keeps things more simple, though assuming you are able to work them out, go for it!

[chriszammett]

Thanks - that's cleared things up. I will just claim for the charges in my initial letter to the bank.

 

Time to get those statements out.

[chriszammett]

Although what does the statement about overdraft interest mean in this line on the letter?

 

"I calculate that you have taken £XXXXX plus £XXX which you have charged me in overdraft interest for the sum which you have taken. Total £XXXXX "

[richardsimkiss]

If the charges meant you were in an overdraft, you would pay interest on the overdraft to the amount of the charge.

 

To the best of my knowledge, "Interest that is charged on the charges" is just a different way approach to saying "overdraft interest for the sum which you have taken"

[chriszammett]

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