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Hiya everyone,
Submitted MCOL for mine last May & hubbys accounts following day. My hubby got full refund from them 5 weeks later. I am so surprised that they only send me a cheq of £369.32 instead of £872.32, so sent the cheq back to them saying that I am not accepted & I m still going ahead with the court etc. But I think I must have done something wrong with the spreadsheet cos my laptop packed up (I could have print the spreadsheet out in the first place!) but anyway I done the spreadsheet again from my son’s laptop, it was a bit higher than the original one for the POC (my mistake??)
Rang the court up, they said the judge will looked at it on on 5th July, & rang them again following week, they said it’s been transfer to another court department and will get a letter from them shortly.
Right, Cap 1 letter arrived yesterday, see below. (So sorry it is a long letter and I need some advice about this please) Thanks
4th July 2008!! (received 11th)
Dear Shira,
Court Claim no. XXXXXX
Claimant: Shira
Defendant: Crap 1
I am writing in reference to the claim that you’ve issued against Crap 1 bank (Euro) plc. In response to ur letter dated 17th June, I confirm that we have received the cheq for £487.08.
I’ve reviewed ur claim & see that it is for the sum of £872.32, comprising of the following:
1) A refund of default fees charged to ur credit card account in the sum of £443;
2) Interest at the rate of 8% from the date of each charge in the sum of £369.32, and statutory interest accruing at a daily rate of £0.097 and
3) Court costs.
On a without admission basis as a gesture of goodwill we’ve agreed to pay the following amounts in settlement of ur claim:
1) All default fees charged to your credit card account in the sum of £371
2) The interest charged on the default fees in the sum of £20.18
3) Statutory intrest on the default fees at 8% per annum totalling £35.90 and
4) Court fees of £60
In your letter of 17 June 2008 you have said that your particulars of claim clearly state the arguments to support your claim and justification for payment of compound interest.
We have already agreed to pay the default sums in their entirety and therefore they are no longer a disputed issue. You have made no representations as to interest, save for that of statutory interest for which you are entitled to claim. As such we will not pay you compound interest.
Notwithstanding the fact you have not pleaded compound interest, we do not consider that you are entitled to claim such and that any claim for this would be successful.
Our position is supported by the High Court decision in the case of Halliday v HBOS plc. In the that case the Judge rejected the claimant’s claim for compound interest at the bank’s contractual rate and instead awarded the claimant simple interest at the statutory rate 8%. Mr Justice Underhill stated that a term relating to compound contractual interest would only be implied where it was “necessary” to do so and it was not necessary in a bank, customer relationship. In addition, Mr Justice Underhill found there was no custom and usage on which to justify implying such a term.
In addition to the statutory interest that we have paid, we have also refunded the interest actually charged on the default fees.
We ve agreed to refund all the fees charged to your account on a without admission basis. These fees were only applied to your account as a result of you breaching your agreement by failing to maker your minimum payment and/or make payments on time and/or make payments on time and/or keep within your credit limit.
If Capital 1’s fees were found to be unfair (which is denied), your breach of agreement entitles Cap 1 to claim from you the losses suffered as a result of your breach. However we have not sought to claim these losses from you.
In light of the above in our view your claim has been settled in full. We have acted entirely reasonably and have refunded over and above the amount you are entitled to claim in an attempt to resolve this matter.
We are confident in our decision to defend this matter and believe that it is vexatious and disproportionate to pursue this claim on the basis that you are entitled to compound interest of which you have made no reference to in your particulars of claim.
In order to avoid greater costs and taking up further court time we invite you to accept our offer of £487.08 in full and final settlement and ask that you discontinue your claim. A copy of this letter has been sent to the court
Raachael Howey
Legal dept
Submitted MCOL for mine last May & hubbys accounts following day. My hubby got full refund from them 5 weeks later. I am so surprised that they only send me a cheq of £369.32 instead of £872.32, so sent the cheq back to them saying that I am not accepted & I m still going ahead with the court etc. But I think I must have done something wrong with the spreadsheet cos my laptop packed up (I could have print the spreadsheet out in the first place!) but anyway I done the spreadsheet again from my son’s laptop, it was a bit higher than the original one for the POC (my mistake??)
Rang the court up, they said the judge will looked at it on on 5th July, & rang them again following week, they said it’s been transfer to another court department and will get a letter from them shortly.
Right, Cap 1 letter arrived yesterday, see below. (So sorry it is a long letter and I need some advice about this please) Thanks
4th July 2008!! (received 11th)
Dear Shira,
Court Claim no. XXXXXX
Claimant: Shira
Defendant: Crap 1
I am writing in reference to the claim that you’ve issued against Crap 1 bank (Euro) plc. In response to ur letter dated 17th June, I confirm that we have received the cheq for £487.08.
I’ve reviewed ur claim & see that it is for the sum of £872.32, comprising of the following:
1) A refund of default fees charged to ur credit card account in the sum of £443;
2) Interest at the rate of 8% from the date of each charge in the sum of £369.32, and statutory interest accruing at a daily rate of £0.097 and
3) Court costs.
On a without admission basis as a gesture of goodwill we’ve agreed to pay the following amounts in settlement of ur claim:
1) All default fees charged to your credit card account in the sum of £371
2) The interest charged on the default fees in the sum of £20.18
3) Statutory intrest on the default fees at 8% per annum totalling £35.90 and
4) Court fees of £60
In your letter of 17 June 2008 you have said that your particulars of claim clearly state the arguments to support your claim and justification for payment of compound interest.
We have already agreed to pay the default sums in their entirety and therefore they are no longer a disputed issue. You have made no representations as to interest, save for that of statutory interest for which you are entitled to claim. As such we will not pay you compound interest.
Notwithstanding the fact you have not pleaded compound interest, we do not consider that you are entitled to claim such and that any claim for this would be successful.
Our position is supported by the High Court decision in the case of Halliday v HBOS plc. In the that case the Judge rejected the claimant’s claim for compound interest at the bank’s contractual rate and instead awarded the claimant simple interest at the statutory rate 8%. Mr Justice Underhill stated that a term relating to compound contractual interest would only be implied where it was “necessary” to do so and it was not necessary in a bank, customer relationship. In addition, Mr Justice Underhill found there was no custom and usage on which to justify implying such a term.
In addition to the statutory interest that we have paid, we have also refunded the interest actually charged on the default fees.
We ve agreed to refund all the fees charged to your account on a without admission basis. These fees were only applied to your account as a result of you breaching your agreement by failing to maker your minimum payment and/or make payments on time and/or make payments on time and/or keep within your credit limit.
If Capital 1’s fees were found to be unfair (which is denied), your breach of agreement entitles Cap 1 to claim from you the losses suffered as a result of your breach. However we have not sought to claim these losses from you.
In light of the above in our view your claim has been settled in full. We have acted entirely reasonably and have refunded over and above the amount you are entitled to claim in an attempt to resolve this matter.
We are confident in our decision to defend this matter and believe that it is vexatious and disproportionate to pursue this claim on the basis that you are entitled to compound interest of which you have made no reference to in your particulars of claim.
In order to avoid greater costs and taking up further court time we invite you to accept our offer of £487.08 in full and final settlement and ask that you discontinue your claim. A copy of this letter has been sent to the court
Raachael Howey
Legal dept
.
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