Amex v Matty - Partial success

[MattyA]

Hi had a claim with Amex for charges.
They paid compound interest on charges up until Oct 07 then simple after that as they said they didnt apply interest to charges after that.
Not true I tell 'em and have statements to prove.
Wont budge so off to FOS.
FOS knock me back saying offer fair as Amex tell them that they havn't charged me interest........didnt even contact me to discuss before making their decision.
This is despite this claim being split off my (upheld by FOS) ppi claim with them and my proving the very same thing, re interest being applied to all charges to the account despite Amex telling them otherwise.

What also concerns me is the following statement from FOS:

I do not agree that the bank should refund interest at both contractual rate and 8%.It would not be appropriate for the bank to pay interest at the card rate on top of interest at 8%,i.e. for the deprivation of funds - it would only be appropriate to pay interest at one rate or the other.I say this because interest could not have accrued at the card rate if you had repaid the charges(i.e. if you had ben deprived of the funds).Similarly,you could not have been deprived of any funds if interest was accruing at the card rate,because you had not paid the charges.In light of this , I feel the banks offer was a reasonable one and I would not ask it to make any further refunds in this respect.'

I have read this a few times and it still does not make sense to me.

As I see it they have applied interest to the charges which in effect is another charge and I am asking for this to be returned.On top of this I am asking for interest in restitution to negate any negative effect these charges have made to my account - i.e. the balance would have been paid off more quickly.

Am I missing someytthing here?

Could do with some assistance with my reply to same - Any help appreciated as I dont want to let this drop.


Matty

P.S. I used Bill/ Turbomans spreadsheet to calculate charges and came up with £1200ish - they offering £700 ish.

[di30]

Re: Amex v Matty - Partial success

Hi Matty

First of all well done on your partial success.

Hopefully Bill or Turbo will be along sometime soon who will have more of an idea on this in regards of the interest issues.

I do understand interest issues may differ for example loan to credit card accounts but with this matter I am not too sure.

Good luck on this.

[TUTTSI]

Re: Amex v Matty - Partial success

Well done Matty for your partial success. Best to PM Turbo and BillK to come and give you some assistance.

[The Debt Star]

Re: Amex v Matty - Partial success

Amex. What a dreadful organisation they are. well done getting anything out of them buddy.

I found that I couldn't get rid of them even when I tried! they would 'lose' my cheques and continue charging me late payments. Total barstewards.

Fos don't seem to like getting involved in charges, as I discovered in my Barclaycard War, but they did get some back, as in your case.

[Turboman]

Re: Amex v Matty - Partial success

Hi Matty----will catch up soon-been away---remind me----is this one me & Bill was helping you with on here ( or elsewhere) ?

[WendyB]

Re: Amex v Matty - Partial success

Had you actually cleared the balance on the account? i.e paid all the charges? I think what the FOS seem to be saying is that as you hadn't actually paid the charges, then you hadn't been deprived of any funds. Which sort of makes sense. If, however, you had paid all the charges and the associated interest, then you would get both the charges and the associated interest back - at least I think that's what it means, anyway. And tbh I can't see why they would pay card rate interest plus 8% on top, surely it's one or the other?

[MattyA]

Re: Amex v Matty - Partial success

Amex. What a dreadful organisation they are. well done getting anything out of them buddy.

I found that I couldn't get rid of them even when I tried! they would 'lose' my cheques and continue charging me late payments. Total barstewards.

Fos don't seem to like getting involved in charges, as I discovered in my Barclaycard War, but they did get some back, as in your case.

Agreed - they really are feckers.
Thanks

[MattyA]

Re: Amex v Matty - Partial success

Hi Matty----will catch up soon-been away---remind me----is this one me & Bill was helping you with on here ( or elsewhere) ?

Hi Turboman - on here I think.....re my GM reclaim calcs(seperate thread), to which you refered me to Bill.
You have also bumped into me elsewhere.
Bill created a spreadsheet(huge) for me which I have used to calculate the PPI & charges re claim on a number of accounts including this one.
The spreadsheet calculates that I am due twice what I have been offered to date - depending on what rate of Interest in restitution is claimed.
I just need to convince the FOS of this....

[MattyA]

Re: Amex v Matty - Partial success

Had you actually cleared the balance on the account? i.e paid all the charges? I think what the FOS seem to be saying is that as you hadn't actually paid the charges, then you hadn't been deprived of any funds. Which sort of makes sense. If, however, you had paid all the charges and the associated interest, then you would get both the charges and the associated interest back - at least I think that's what it means, anyway. And tbh I can't see why they would pay card rate interest plus 8% on top, surely it's one or the other?

Thanks for the comments Wendy - TBH I am not sure what is right & what isnt.
I have put my trust into Bills spreadsheet and the number it spits out are higher than what has been offered to date.

Re your comments my thoughts are:
If I am charged interest and they accept that this is wrong and pay it back,it does not fully reconstruct my account to what it would have been if they had not applied the charges or the associated interest in the first place,as the money would have been used to reduce the balance carried forward and subsequently the interst applied to the balance carried forward the following month...and so on.
In theory the balance would have / should have been paid off earlier and I would have / should of paid less interest on the balance.
God knows how you calculate that one though....

Matty

[pompeyfaith]

Re: Amex v Matty - Partial success

I can't see why they would pay card rate interest plus 8% on top, surely it's one or the other?

Because card rate interest has been paid and 8% statutory is compensation for being deprived of the funds so yes indeed both can be paid as I was on my loans.

They made a financial gain out of a financial wrong.

Credit card is no different in that respect.

[MattyA]

Re: Amex v Matty - Partial success

Because card rate interest has been paid and 8% statutory is compensation for being deprived of the funds so yes indeed both can be paid as I was on my loans.

They made a financial gain out of a financial wrong.

Credit card is no different in that respect.


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Cheers for that Pompey.

[MattyA]

Re: Amex v Matty - Partial success

FOS have not upheld my claim re refund of interest applied to charges.
I am really P****d off.
FOS say as Amex have said they dont apply interest to charges they have no reason not to BELIEVE them - god help us all!
I sent them copies of statements which clearly show that interest has been applied to everything - FOS say I should get my statements audited by an external auditor as this is a service they do not offer.
Are they f*****g joking - this is not rocket science we are talking about here but SIMPLE mathematics. 1.2 % on whols balance = X.
Not sure where I go from here......but have now got zero confidence in the abilities / backbone of the FOS.
At the end of the day it is the banks who fund them.....which at best is incestuous.

The only option is to ask for an ombudsman to have a look ,but this will take an age.

Anyone else had the same issues?

Matty

[pompeyfaith]

Re: Amex v Matty - Partial success

Matty,

I sent them copies of statements which clearly show that interest has been applied to everything - FOS say I should get my statements audited by an external auditor as this is a service they do not offer.

The FOS have what they call a calculations team and this is not hard for them to calculate.

FOS say as Amex have said they dont apply interest to charges they have no reason not to BELIEVE them - god help us all!

Maybe a good idea to find someone on these forums who has had an Amex claim settled via the FOS with interest applied to charges and use that to refute they assertion.

The only option is to ask for an ombudsman to have a look ,but this will take an age.

That is a must ok it will take longer, but if you are cetain that you are right you must carry on the fight.

Regards

[MattyA]

Re: Amex v Matty - Partial success

Matty,

The FOS have what they call a calculations team and this is not hard for them to calculate.



Maybe a good idea to find someone on these forums who has had an Amex claim settled via the FOS with interest applied to charges and use that to refute they assertion.



That is a must ok it will take longer, but if you are cetain that you are right you must carry on the fight.

Regards
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Thanks Pompey.

It will have to go to Ombudsman - that will be 2 with Amex now.

I am sure I am right - no matter which way you calculate it - It doesnt stack up.
They have either applied interest to the PPI charges or have overcharged interest to my account.


There is not a lot of Amex activity on here -BTW did I say Amex are Feckers?


Matty

[Turboman]

Re: Amex v Matty - Partial success

Because card rate interest has been paid and 8% statutory is compensation for being deprived of the funds so yes indeed both can be paid as I was on my loans.

They made a financial gain out of a financial wrong.

Credit card is no different in that respect.


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PF---you got back the PPI Monthly Payments + 8%-----PPI Monthly payments in your case included a portion to pay the loan capital and a portion that you actually paidof the the agreed interest----BUT the monthly PPI paid sum includes both

We must be careful not to read thisacross to Credit Cards

I agree with Wendy -its one or the other re the 2 interest sums on this Credit Card scenario -but not both--- IMO