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Re: MIKE770 v Capital One
My claim against Capital One was actually settled using a rate of 27.5% compounded.
The final hearing, which they settled just before, was to have decided the rate to be used for settling my claim. I was actually claiming 30.34% which is the Capital One equivalent annual rate for cash advances.
All credit card companies use a variety of interest rates depending on the type of card, purchases or cash advances etc etc. For Capital One the rate varies between around 8% and 30.34%.
So I claimed for the maximum rate and actually settled for a lower but still quite high rate. IMO it would have been just as risky for me to go to the final hearing and try to argue for an extra 3% on the rate as it would have been for Capital One to go to the final hearing and risk having a judgement against them in respect of any rate of compound interest at all.
In reality, I suppose that if our argument is............. that they have taken money from us in unlawful charges and then used that money and turned it to account by being able to lend it out to others at their usual commercial rates of interest............. then perhaps we should really be thinking about applying some form of average rate in line with the average rate of return that they actually achieve in their commercial activities. Following this line of argument it could be considered that it is just as incorrect to use the cash advance rate as it is the purchase rate and vice versa.
However, as any credit card provider is never likely to divulge this information just as they are never likely to divulge how much it actually costs them when we breach our contracts and go over our limits or make a late payment then I see absolutely no reason why we should not submit our claims at the highest rate of compound interest that we can actually justify and then let them argue against it.
Rgds Budgie
My claim against Capital One was actually settled using a rate of 27.5% compounded.
The final hearing, which they settled just before, was to have decided the rate to be used for settling my claim. I was actually claiming 30.34% which is the Capital One equivalent annual rate for cash advances.
All credit card companies use a variety of interest rates depending on the type of card, purchases or cash advances etc etc. For Capital One the rate varies between around 8% and 30.34%.
So I claimed for the maximum rate and actually settled for a lower but still quite high rate. IMO it would have been just as risky for me to go to the final hearing and try to argue for an extra 3% on the rate as it would have been for Capital One to go to the final hearing and risk having a judgement against them in respect of any rate of compound interest at all.
In reality, I suppose that if our argument is............. that they have taken money from us in unlawful charges and then used that money and turned it to account by being able to lend it out to others at their usual commercial rates of interest............. then perhaps we should really be thinking about applying some form of average rate in line with the average rate of return that they actually achieve in their commercial activities. Following this line of argument it could be considered that it is just as incorrect to use the cash advance rate as it is the purchase rate and vice versa.
However, as any credit card provider is never likely to divulge this information just as they are never likely to divulge how much it actually costs them when we breach our contracts and go over our limits or make a late payment then I see absolutely no reason why we should not submit our claims at the highest rate of compound interest that we can actually justify and then let them argue against it.
Rgds Budgie
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