Interest rate offer wrong?

[ROBSTER]

All claimants take notice that Barclaycard are offering either a flat rate of 8% or a flat rate of what they refer to as "contractual interest" (EG 12%-23%) or just stating that they are refunding contractual interest (not quoting a figure) and putting in an amount (eg £12.19 on a £180 charges settlement).

Ok if all your charges are less than a year old but scandalously low if your charges go back to say 2003. In some cases the actual contractual interest will be of the order of 10 X what they are offering in a cleverly scribed letter suggesting you are receiving full charges plus contractual interest, but not applied as they chargesd it compounded monthly.

Has any body been made similar offers and accepted on the basis that what Barclaycard are offering is all of the contractual interest ever taken as a result of the charges?


:beagle:

[Budgie]

Re: Interest rate offer wrong?

The problem is that what they are describing as contractual interest isn't what you are thinking it is.

In their view contractural interest is the interest that they charge you, ie either purchase interest or cash advance interest as described in the contract between you.

When they say they are refunding you contractual interest they usually mean that they are refunding you the interest that they have actually charged you either in respect of contractural interest on the unlawful charges that they have applied, for the period of time that they were outstanding on your account ( until you made your next payment ) or, in some cases, they might actually offer to refund you all of the contractual interest that you have ever paid across to them.

The above is not to be confused with "claimed compound interest".
Which is the interest that you might claim on each individual charge from the date it was applied to your account to the present date.
You might request compound interest on the basis that the credit card company have been unjustly enriched by taking the money ( in the form of charges ) from you in the first place and then have further unjustly enrcihed themseleves by being able to turn that money to account by lending it out to others at commmercial rates of interest.

Note, that when claiming compound interest from the date that each charge was applied to your account to the present day, you are actually already claiming back the bit of contractual interest they have applied to your account anyway. There is no need to add contractual interest to your claim and then apply compound interest to that as well as the charges ( in fact it would be wrong to do so ). If you need any further explanation I would be happy to oblige.