Go back
Interest Advice

Interest Advice

Debates

f
Diane

Nairn

Joined
23 Feb 04
Moves
90933
Clock
13 Jan 08
Vote Up
Vote Down

I am owed some money by a large company who have admitted liablilty for debiting money out of my bank account for some time, question is they are now offering me the amount back, but I would like to claim interest on this amount but would I claim interest like say a credit card would calculate it i.e month on month or would I just add it on to the sum total owed.
I am trying to do a letter of complaint and want to make sure this is done correctly ,so any help would be greatly appreciated.

a
AGW Hitman

http://xkcd.com/386/

Joined
23 Feb 07
Moves
7113
Clock
13 Jan 08
Vote Up
Vote Down

Originally posted by fiesta
I am owed some money by a large company who have admitted liablilty for debiting money out of my bank account for some time, question is they are now offering me the amount back, but I would like to claim interest on this amount but would I claim interest like say a credit card would calculate it i.e month on month or would I just add it on to the sum total o ...[text shortened]... omplaint and want to make sure this is done correctly ,so any help would be greatly appreciated.
I'd do it the same way that revenue services do it. Compound interest on a monthly basis. I'm no expert on the legalities, but if the IRS or revenue commissioners can do it, why not the private individual?

duecer
anybody seen my

underpants??

Joined
01 Sep 06
Moves
56453
Clock
13 Jan 08
Vote Up
Vote Down

Originally posted by fiesta
I am owed some money by a large company who have admitted liablilty for debiting money out of my bank account for some time, question is they are now offering me the amount back, but I would like to claim interest on this amount but would I claim interest like say a credit card would calculate it i.e month on month or would I just add it on to the sum total o ...[text shortened]... omplaint and want to make sure this is done correctly ,so any help would be greatly appreciated.
they could also be liable for any bounced checks etc... write them a bill and send it to them.

M
Who is John Galt?

Taggart Comet

Joined
11 Jul 07
Moves
6816
Clock
14 Jan 08
1 edit
Vote Up
Vote Down

Absolutely. When you have sorted the monthly interest, do it up in a professional manner, exhibiting totals of all you are owed.

(meaning make a declarative statement to them as opposed to just saying "I want interest also." Give an impression of strength.)

STS

Joined
07 Feb 07
Moves
62961
Clock
14 Jan 08
Vote Up
Vote Down

They were taking money out of your account, without your permission, and have admitted liability? Now they want to give you the money back, like nothing happened?

Talk to a lawyer. Seems like they owe you a lot more than that.

a

THORNINYOURSIDE

Joined
04 Sep 04
Moves
245624
Clock
14 Jan 08
Vote Up
Vote Down

Originally posted by fiesta
I am owed some money by a large company who have admitted liablilty for debiting money out of my bank account for some time, question is they are now offering me the amount back, but I would like to claim interest on this amount but would I claim interest like say a credit card would calculate it i.e month on month or would I just add it on to the sum total o ...[text shortened]... omplaint and want to make sure this is done correctly ,so any help would be greatly appreciated.
http://www.payontime.co.uk/calculator/contractual.html

You can calculate what the buggers owe you by using this calculator.

I'd suggest using an interest rate of about 8% as being reasonable.

Rajk999
Kali

PenTesting

Joined
04 Apr 04
Moves
260841
Clock
14 Jan 08
Vote Up
Vote Down

Originally posted by adramforall
http://www.payontime.co.uk/calculator/contractual.html

You can calculate what the buggers owe you by using this calculator.

I'd suggest using an interest rate of about 8% as being reasonable.
If you can show that you have been paying a credit card balance then there is a case for charging 14 to 18% interest (which is what CC companies charge on overdue balances). It all depends on the amount due compared to the CC balance.

P
Upward Spiral

Halfway

Joined
02 Aug 04
Moves
8702
Clock
14 Jan 08
Vote Up
Vote Down

Originally posted by fiesta
I am owed some money by a large company who have admitted liablilty for debiting money out of my bank account for some time, question is they are now offering me the amount back, but I would like to claim interest on this amount but would I claim interest like say a credit card would calculate it i.e month on month or would I just add it on to the sum total o ...[text shortened]... omplaint and want to make sure this is done correctly ,so any help would be greatly appreciated.
What interest rate are you thinking of using, though? If you can, see what interest rate this company charges to customers. It's usually relatively high, but since it's exactly their own, they'll have a harder time arguing against it.

Actually, I'd use exactly the method they use for compounding interest on customers who are late.

AThousandYoung
1st Dan TKD Kukkiwon

tinyurl.com/2te6yzdu

Joined
23 Aug 04
Moves
26751
Clock
14 Jan 08
Vote Up
Vote Down

Originally posted by fiesta
I am owed some money by a large company who have admitted liablilty for debiting money out of my bank account for some time, question is they are now offering me the amount back, but I would like to claim interest on this amount but would I claim interest like say a credit card would calculate it i.e month on month or would I just add it on to the sum total o ...[text shortened]... omplaint and want to make sure this is done correctly ,so any help would be greatly appreciated.
Hire a lawyer and tell him to find a way to pay himself. He'll manage to get you more money.

f
Diane

Nairn

Joined
23 Feb 04
Moves
90933
Clock
14 Jan 08
Vote Up
Vote Down

Originally posted by Palynka
What interest rate are you thinking of using, though? If you can, see what interest rate this company charges to customers. It's usually relatively high, but since it's exactly their own, they'll have a harder time arguing against it.

Actually, I'd use exactly the method they use for compounding interest on customers who are late.
Firstly can i say thanks for all your replies... Ok it's a large utility company that has been debiting £45.00 per month from my bank account .. it was picked up on when I went into my overdraft facility,and called my bank to see what had come out .. they have been debiting it since I was told originally 2005, on contacting the utility company they have admitted liablilty and confirmed they have been debiting it since 2002 ....yes I know i should have checked my statements thoroughly, but it's a lesson well learned ... the issue now lies with the bank who I cancelled the direct debit with in 2005 and they carried on letting the utility company debit after the the account was closed, but also the utility company as I stopped paying to them in May 2002, and they have debited the money since even thoug they had my final reading in 2005 ...so in total the utility company have said it's a massive error on their part and have offered me the full £45.00 x 68 months.... however I wanted to charge them interest and compound like a credit card or loan company would do... is this unrealistic to work on a month on month as if i just ask for 8% interest its coming in at £244.00. I have also been made aware of some direct debit legislation,where companies have to refund the money immediately if the error is with them ..would love to chance my arm and try month on month interest...is this worth a shot?

P
Upward Spiral

Halfway

Joined
02 Aug 04
Moves
8702
Clock
14 Jan 08
2 edits
Vote Up
Vote Down

Originally posted by fiesta
Firstly can i say thanks for all your replies... Ok it's a large utility company that has been debiting £45.00 per month from my bank account .. it was picked up on when I went into my overdraft facility,and called my bank to see what had come out .. they have been debiting it since I was told originally 2005, on contacting the utility company they have admi th them ..would love to chance my arm and try month on month interest...is this worth a shot?
Can you name the utility company? PM me if you prefer.

Don't forget to add interest from the last debit they made up until today (and mention that it adds up until the day they pay).

Edit 2: If they removed you £45 pounds every month for 68 months, then 8% a year should give you around £800 of interest alone at the end.

P
Upward Spiral

Halfway

Joined
02 Aug 04
Moves
8702
Clock
14 Jan 08
3 edits
Vote Up
Vote Down

Monthly interest rate 1.08^(1/12) = 1.00643
1 45 0 45.29
2 45 90.87
3 45 136.74
4 45 182.91
5 45 229.38
6 45 276.15
7 45 323.21
8 45 370.58
9 45 418.25
10 45 466.24
11 45 514.52
12 45 563.12
13 45 612.04
14 45 661.26
15 45 710.81
16 45 760.67
17 45 810.86
18 45 861.36
19 45 912.19
20 45 963.35
21 45 1014.84
22 45 1066.66
23 45 1118.81
24 45 1171.3
25 45 1224.13
26 45 1277.29
27 45 1330.8
28 45 1384.65
29 45 1438.85
30 45 1493.4
31 45 1548.29
32 45 1603.55
33 45 1659.15
34 45 1715.12
35 45 1771.44
36 45 1828.13
37 45 1885.18
38 45 1942.6
39 45 2000.39
40 45 2058.55
41 45 2117.08
42 45 2175.99
43 45 2235.28
44 45 2294.95
45 45 2355.01
46 45 2415.45
47 45 2476.28
48 45 2537.5
49 45 2599.12
50 45 2661.13
51 45 2723.54
52 45 2786.36
53 45 2849.57
54 45 2913.2
55 45 2977.23
56 45 3041.68
57 45 3106.54
58 45 3171.81
59 45 3237.51
60 45 3303.63
61 45 3370.17
62 45 3437.15
63 45 3504.55
64 45 3572.39
65 45 3640.66
66 45 3709.38
67 45 3778.53
68 45 3848.13

Last value is 1 month after last debit.
Exactly at last debit = 3778.53+45
Just the 45*68 = 3060

Edit - If I'm doing things right. 😛

Edit - 8% a year sounds quite high, though. If it's overdraft interest rates you're using, maybe that's not the best rate. Try seeing how much they use a year when their customers are late.

Cookies help us deliver our Services. By using our Services or clicking I agree, you agree to our use of cookies. Learn More.