Capquest - are they pulling a fast one?

[oddball]

Hi, I'm baffled by this. Any ideas would be appreciated. My friend had a debt with an online shopping co. which she paid off via Capquest, she said 'years ago'.
They have written to her recently saying she is owed a refund as she's overpaid. Another letter received today says she has overpaid £165 and it is "broken down" like this:
a) Refund of Overpayment £165
b( Compensatory interest at 8% pa £191.63
c) Less tax at 20% £38.33
d) Total refund: £2.66

Is this a scam? and since when do debt collectors charge compensatory interest?
Thanks for any advice.

[Sam101]

Sounds very much like a scam. Ask them to send a cheque or postal order for the amount or forget it.

[jaguarsuk]

Hi, I'm baffled by this. Any ideas would be appreciated. My friend had a debt with an online shopping co. which she paid off via Capquest, she said 'years ago'.
They have written to her recently saying she is owed a refund as she's overpaid. Another letter received today says she has overpaid £165 and it is "broken down" like this:
a) Refund of Overpayment £165
b( Compensatory interest at 8% pa £191.63
c) Less tax at 20% £38.33
d) Total refund: £2.66

Is this a scam? and since when do debt collectors charge compensatory interest?
Thanks for any advice.

Who are they? Capquest or the shopping company?

This is why it is a scam:

If she is owed money, that would be the overpayment amount plus the interest because this is in her favour and not £2.66.

The tax on savings interest is like income tax and calculated based on your overall earnings, how could they know your friend is in the 20% tax bracket without asking her?

And this is not savings, it is compensation and only Higher Rate tax payers need to inform HMRC about compensation regards Tax, so if they are assuming your friend is in the lower rate tax band she wouldn't be liable.

Finally, the Total refund amount is not consistent with their figures: 165 + 191.63 - 38.33 = 318.30