Hello, some advice please :)

[totalequilibrium]

Hello - firstly thanks to all who contribute, wonderful site.

Can anyone please advise me on compound interest? Im claiming back my charges from catalogues.

39.7% APR, calculated daily and compounded every 28 days.

I thought I had it but now I have read so much that I am utterly confused

Any pointers appreciated.

Many thanks.

[Bill-K]

Re: Hello, some advice please

Hi, and welcome to you, TotalEquilibrium.

Yeah, compound interest is a bit tricky compared to simple interest. Basically, it 'compounds' on itself just like a snowball gathers weight. The more it gathers, the larger its' surface area, so it gathers even more on each subsequent roll.

Actually, it is usually compounded on a DAILY basis (ie., it is calculated as 'Compounded Daily') - in that each roll of the 'snowball' is taken as occurring once a day.

BUT - it is only charged to the account once a month. The method of calculation and the charging dates are two separate things, I'm afraid !!!

But - we don't usually need to know all this stuff, because what we were charged in account interest on any particular date is no longer dependent upon such calculations. It is a charge that was made - on that date - and the method of calculation is not usually in question. It is usually the 'black and white' issue of whether the charge should have been made, or not. All or nothing, in effect.

Delving any deeper than that may NOT be necessary - and usually isn't. I sure don't want to belittle your query, TE - but I don't want to see you side-tracked by the maths, if you don't need to be.

Hit us with some more details of your query, and we'll probably be able to spare you a lot of the maths stuff.

[totalequilibrium]

Re: Hello, some advice please

Thank you for your reply! I really do appreciate your assistance!

Yes I'm sure when I looked into it before I had sent my SAR I found it more straight forward; then I came to do it and found lots more info that perhaps I do not need! Then I found myself quite confused about where I stand. I understand the concept of compounding I believe but the 'how' I it is a whole new territory for me!

I was not sure if my Daily Rate should be based upon my APR or EAR and was concerned about using a online calculator that compounds 12 times per annum or a daily compound spreadsheet when Shop Direct compounds mine 13 times. I specifically was not sure if I had to claim like for like as such.

I have charges dating from 2009/10 to present (3 accounts) 2 are clear but the 3rd they are truly unhelpful about and even when I make additional payments, they add a double charge to ensure my balance only ever goes up! In short, I am tired of their games and wish my charges to be refunded, in full plus compounded initially and the 8% statutory also if they should decide they wish me to take them to court. (which I will gladly do if necessary; feedback reports that although they will be resistant in the beginning they usually settle a few days before court) I do not wish to have any in-hand remittance just a reduction of my account so it can be managed to 0 balance and I can close them all!

Please let me know any further info needed, specifics wise and I will happily post Sorry for my vagueness, I have spent the last three evenings up to my ears in formulae and perhaps it's best I start back at the beginning

With many thanks and kind regards.

[Bill-K]

Re: Hello, some advice please

TE., I think you need to draw back from the maths formulae and read up on the actual mechanics of making a claim. It's no use knowing that e=mc^2, if you don't know how to flag down a bus when you simply need to go to the library !!!

Sorry to be so blunt, but I think you need to know HOW to make a claim - and WHY you are making it, before you study how to evaluate any response to it.

[totalequilibrium]

Re: Hello, some advice please

Thanks for your advice Bill.

I did say it was best for me to start out again from the beginning due to the recent intake of so much varying information. This is an area outside of my own field of expertise and therefore it can be difficult to know which sources are accurate and genuine, hence the confusion. Too much; possibly irrelevant information.

I do know exactly WHY I am reclaiming these charges. They are disproportionate; is does not cost the company £12 to call, send a letter or even when a minimum payment is not made - without mentioning the interest they have been compounding on top of this to their advantage. It is by my understanding that they, on request, should be able to account fully for how my/their actions have actually cost them x amount.

I am looking for pointers to my next step. As mentioned I have issued a SAR and received the information in response to this.

Perhaps I have been too analytical but I do want to ensure I am not sending them incorrectly based figures. I would always prefer to confirm the fact from speculation.

You know what they say if you want a job done well?

I do like to know how things work. I could potentially drive a car around all day long without needing to know what is going on under the bonnet - but if I do know; I am in a wonderful position to rectify it if it goes wrong. It brings understanding to the situation.

Thanks again for your advice; I will retrace and see if my questions can be answered.

Regards.

[Bill-K]

Re: Hello, some advice please

Apologies if I seemed to be belittling your efforts, TE. You explained your 'modus operandi' excellently, I reckon. People like yourself are indeed the sort of peeps that these forums enjoy the company of !!!

Taking the car analogy, I guess you need to get from A to B. To do this, you need to know how to drive the car, first of all. To be able to plug an engine data analysis computer into the EMC port and understand the readout will not do this. You need to work a tthe higher level of programming the SatNav !!!

Hydrocarbon analysis MAY be of use if you fail the "MOT" emissions test - but let's plan our journey with a degree of optimism, first !!! Sure - if we get pulled by the Plod mid-journey, then a recent emissions readout might be useful, if they reckon we have a smoky exhaust.

It's a matter of focussing, I believe. Sure - you can unlock the car and start the engine. You know how the engine works - that's good. But - you need to know where you want to go, and how you want to get there - and THAT's what we need to get sorted first, methinks.
------------------------------- merged -------------------------------
LOL - and please know that I say this with a warm smile on my pretty moosh - because I really do appreciate dealing with peeps like you, who are prepared to roll their sleeves up and lift the bonnet !!! :beagle:

[totalequilibrium]

Re: Hello, some advice please

Dear Bill,

Please firstly accept my apologies for not replying sooner. I took a few days off to oversee my daughters birthday arrangements.

Your kind words have touched me and I really do appreciate the time you have dedictated to my questions. I feel similarly that more consumers should step forward with confidence and support to challenge injustice.

The plotted course in my mind would be A-B-C in very simple form.

A = documents in hand (tick!)
B = approach shop direct with a figure (need to generate figure)
C= negotiate directly with thier legal team and escalate to court if necessary. (have email addresses, will type )

So I'm at point B where I wish to approach them with a figure. I need first to generate the figure based upon my documents received.

Do you believe that the spreadsheet available in the resources area will fulfil my requirements?

Kind regards.

[Bill-K]

Re: Hello, some advice please

What you have is a 'revolving credit' style of catalogue account, I believe, TE.
They have been charging penalty charges to it, which you are reclaiming on the basis that they are unfairly and unlawfully charged.
What you are also claiming back is the portion of account interest charged on these accumulated penalties - if I understand you correctly.
Finally, you are claiming Compensatory Interest (at the 8% Statutory rate) on this.

That all looks fine to me, but the spreadsheets currently in the Resources section will not calculate the apportioned account interest, and I would suggest that you use the one attached here. If you are also reclaiming Payment Protection Insurance (PPI), then there is a column (F) for this. If not, then just use column G for the penalty charges.

Enter the APR in cell M3. If it changes at any time, then alter it in column J at the time of the change. You will need to enter the amounts of monthly interest charged in column H, but you can ignore the monthly account balance owing in column I, only if you are NOT claiming any Compensatory Interest.

If you've done that, then the spready will work out the monthly account interest which was charged on the part of the account balance which is directly attributable to the accumulated penalty charges.

Finally, column O works out the Compensatory Interest in line with the current FSA/FOS guidelines, which rule that this interest can be charged if the account balance WOULD have been a CREDIT balance in any month - if the charges had not been made.

There is no need to understand the formulae used in calculating compound interest from the APR, as it is already built into the spready. I hope this will do the trick for you, TE - but if you have any queries, then do please post up here, and I'll take a look.

[labman]

Re: Hello, some advice please

TE - I love Maths, BUT if ever I had a question over this sort of thing, I would never try to do it myself or understand it myself. Why? Because there are two or three people on this site who can do the figures standing on their heads.

One of those people is Bill. Trust him - he won't let you down!

So Bill - no pressure now! lol

[totalequilibrium]

Re: Hello, some advice please

Thanks Bill! I will have a look and run my figures through soon

Labman; thanks for your advice. Bill has been very helpful indeed. I could not seem to find an appropriate resource until now. Looking forward to exploring the new spready

I'll be in touch

[Bill-K]

Re: Hello, some advice please

LOL - CHEERS, Labman.

.........I think !!!

Seriously, there are peeps who expect us geezers 'ere to do it all for them - and that's not the way it works. It's all about self-help - but 'With a Little Help from My Friends.'

I'm all for peeps making the effort to understand what it is they are reclaiming. If it does actually have to go to Court, then they know what they are talking about, and will confound the lender's barrister - who is probably an expert on Jeremy Kyle rejects, but hasn't a clue on compound interest.

But - we must be able to focus on what is needed, at the time it is required.

If we then go on to help others - as I would like to see TE doing (hint...) - then we could do much worse than read up on the basics, I reckon. We build on that stuff.
------------------------------- merged -------------------------------
TE - there are 'hidden' columns in the spready. I'd be glad to help with that, if you're interested in doing the geek stuff.

[strangewayofsavin]

Re: Hello, some advice please

you see, this is why Mr cameron does not want devoloution of Scotland, because even though they eat fried mars bars, Haggis Neeps and Tatties, the scotts are clever gits, and we need them in the British economy.
Rangers are skint, but it is that, we will do better mind, the British economy need ( not Mr Brown, a Scott who lost his way, and never had a clue, we need to loose).
Devoloution is a choice for the Scotts, which would be a loss to the British club, although we would save a fortune in spare change on the tube and the big issue would go into administration (pmsl), the Jocks are O.K

[Bill-K]

Re: Hello, some advice please

'Twas good that SWOS stumbled into here, as it forced me to re-read some of my previous posts, and I may need to apologise to TE for perhaps giving the impression that their enquiries here were being looked upon by me with disdain. The wording of my posts may have implied this - but I need to say that the opposite is true. If you're still here, TE, then I want you to know that I was praising your willingness to get to grips with this stuff - as opposed to others who don't quite get the 'self-help' aspect of these forums. My words may not have conveyed that - and I repeat my apology for that.

As for SWOS - well...I can only hurl further abuse at you, sir, in return !!! I need to distance myself a little first, though, as I "come from a land down under." No - NOT Oz - but I was born below the tropic of Watford. Kingston, in fact (Surrey - NOT Jamaica - LOL) But I moved up here when Daughter #1 was born 21 years ago to get out of the 'Smoke' and give her a chance of survival.

They call me "The Cockney Jock" up here (among other things...)