are there any experts on compounded contractual interest

[jackster77]

Hi I succesfully claimed compounded contractual interest from MBNA

 

however they say I can only claim it untill the account was closed in 2005

 

I wanted to claim it until my claim date in 2007

 

There is a £1000 deficet

 

and I'm trying to work out if they are right or am I

 

thanks in advance

 

Jackster

[steven4064]

That depends...

 

On what basis are you claiming CCI?

 

1) You can (and should) claim back any interest they levied on the charges. This will be at their APR compounded from the date of the charge until the date the account was closed.

 

2) Some have tried to claim CCI at their APR on top of this on the basis that they have effectively 'borrowed' all that money from you and this is what it would have cost you if you had borrowed it from them - this is the concept of mutuality and reciprocity (or fairness). However, there was a recent test (Halliwell - v - HBOS (Halliwell is 'dad' on GAG)) case where this was knocked on the head.

 

3) Howerver, there is an even more recent test case (Sempra - v - Inland Revenue) where this has been partly reversed. With this (I/we think) you may be able to argue as follows:

 

MBNA charged me £x unlawfully. Further they also charged me interest of £y on those charges. That left me short of £z. In order for me to have the same amount of money 'in my hand' (ie to put things as they would have been if MBNA had not unlawfully taken this money) I would have had to borrow £z from my bank. This would have cost me £w based on my bank's authorised borrowing rate. Therefore I also claim £w as an equitable remedy on top of the charges of £x and the interest of £y.

 

This argument remains to be tested in court.

 

PLus the calculation is not as easy as I have made it sound. You have to calculate compound interest at some rate for each charge and each interest charge from the date it was made until the date of your claim.

 

Hope this helps

[jackster77]

I steven

 

thanks very much for your reply - I was trying to claim compounded contractual interest untill the date of my claim

but it seems a bit tricky - I don't know whether to leave it as it is or reject the offer

 

In the second scenario that you gave me do you think it is worth fighting for

 

because as MBNA have also admitted that they can't find my CCA i was considering going down the route of standing and wednesday ie that as they cannot provide the agreement they cannot prove what interest i agreed to pay there fore I want to claim it all back

 

but I don't want to completely take the **** out of mbna

any advise or input would be grately appriciated

 

and thanks again

[steven4064]

Scenario 2 is dead - if it came to court it would be thrown out. You should certainly do 1) and consider 3) (3 contains 1)

[jackster77]

ok steven I have sucessfully got one from them

 

will scratch my head for a while and decide whether to go for 3

 

 

thanks again