s/business-banking.dwt" --> Bank interest and charges disputes
banking liaison group

bank interest disputes


Is there a bank interest problem?

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.

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