Firm Interest Policy
If we hold money in a general client account on your behalf, or if money should have been held on your behalf but was not, then we will account to you for a sum in lieu of interest calculated as below. Similarly in the event that the UK experiences negative interest rates we would charge you at a rate we believe reflects the market rate of interest charged on an instant access current account offered by a UK high street bank over the period when interest charges accrue.
We will not account to you/deduct payment for any interest in the following situations:
- if the amount calculated is £50 or less.
- on money held for the payment of a professional disbursement if the person to whom the money is owed has requested a delay in settlement.
- on money held for the Legal Services Commission.
- on an advance from us into our general client account to fund a payment on your behalf in excess of funds already held for you in that account.
- if there is an agreement to contract out of the provisions of this policy.
If money is held for a continuous period, and for part of that period it is held in a separate designated client account, we will account to you for a sum in lieu of interest for the rest of the period when the money was held in a general client account regardless of whether it is less than £50. Likewise, we will deduct and interest due to us in the case of a negative interest situation regardless of whether it is less than £50.
We will calculate and pay/deduct interest once your matter has been concluded.
In calculating interest, we will apply a rate that we believe reflects the market rate of interest paid on an instant access current account offered by a UK high street bank over the period when interest is due either way.
We will review the interest rates quarterly and whenever the Bank of England changes its Bank Rate.
In determining the period over which interest is to be calculated, we will look at the following: the period between the date when the relevant funds received by us clear our account and, if we send the funds electronically, the date when the funds are sent or, if we send the funds by cheque, five days after a cheque is raised.