These disputes get more publicity than any other
type of claim, probably because there are several companies making
a living by using computer programs to check bank interest calculations.
A World In Action survey in Ilkley found 40% of
personal bank accounts overcharged - and all small business
accounts. Other television programmes report similar outcomes.
What about the banks?
Banks' spokesmen usually say
customers should check their statements. But overdraft interest is
often the biggest invoice that a business cannot check.In our experience
banks will pay up if their calculations are shown to be wrong - some
more quickly than others. But
If you want to preserve the relationship, they have to be approached
in the right way
Their interest checking processes can take some time
The discussions can get very detailed and technical. Knowledge
of bank interest procedures is a big help
We think our interest may be wrong. So what should we do?
Our guidelines are
Define the problem. Is one interest period
out of line, or do they all seem too high?
Consider asking the bank if they will check
it.
If you're not satisfied with that, arrange
an independent check.
If it is agreed that an overcharge has taken
place, consider a claim for consequential
loss. This can be an important part of any claim, and most businesses
will need outside help with it.
Consequential loss?
Consequential loss can be broken down roughly as follows
Compounding - interest on the excess interest you've been charged.
Your interest checker should calculate this for you.
Fees and charges incorrectly levied. Get the interest checker
to do this for you.
If cheques have been returned because of the extra interest
debited to your account, claim for damage done to your reputation,
and the impact on your terms of trade.
Have you had to turn business away because of the extra interest
charged? If so, claim for profits foregone.
In complex cases a Forensic Accountant will help with the sums. We
can arrange an introduction.
