Calculation of refund of barclays packaged bank account

[melann]

Hi
I complained about a mis sold current account with Barclays, called additions.
The complaint was upheld and I have been sent details of a refund.
Is anyone in this site familiar with how the 8% simple interest is calculated as I would like to check it.
The monthly fee was £6.50.
Account refund from date of upgrade was from Oct 2006 to now, October 2015 which is £689 they say. In.actual fact 9 full years should be £702.

The interest figure at 8% simple is quoted as 260.60 ( then of course income tax deducted from That).

Tax deducted is 52.12.

Total refund is 897.48.

Does the 8% Interest look.correct?

Regards

[leclerc]

Re: Calculation of refund of barclays packaged bank account

First fee would not have been taken out until the end of the following month and furthermore, the October 2015 fee might have been waived as it would have gone out at the end of the following month ie November(or it was partial fees for part of the month that were either waived or not taken).

The interest question is one that others will need to respond to.....

[melann]

Re: Calculation of refund of barclays packaged bank account

Thanks.

Can anyone clarify if the 8% interest calculation is correct for me?

Regards

[robin-hood]

Re: Calculation of refund of barclays packaged bank account

IF you did in fact pay £6.50 each month for the full period, your Offer Calculation is a little short. The correct total is £961.95 with stat calculated to 1st November 2015.
£6.50 per month for 108 Months between Oct 2006 and Oct 2015 would produce £702 in refund of premiums and £259.95 in statutory interest @ 8%pa.
Statutory Interest is calculated at 8%pa simple on each £6.50 payment that you made for the number of days from the date you made each payment to 01/11/2015.
So the first £6.50 is 3318 days old @ 8%pa = £4.73.
The second £6.50 is 3287 days old @ 8%pa = £4.68.
The third £6.50 is 3257 days old @ 8%pa = £4.64.
And so it repeats for each payment.

I would go back to Barclays and ask them for a full calculation showing a schedule of payments based on the offer being nearly £65 less than expected.
Unless Barclays have a good reason why the offer is less than expected then contact the FOS asap (08000 234567) - you only have 6 months to do this from the date of your offer - and we are approaching this fast!!!
Please can you post any positive outcome on here so Robin Hood knows he has done a good deed - more pennies taken from the Greedy and given back to the Needy.