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Since October 2014 I have being receiving cheques from MLC connected with the mistakes made on their Navigator Wealth Platform. Despite numerous attempts to get accurate information, I am still not able to get all questions answered. This situation is ongoing.
They have, however, stated the the interest figure I have received going back a number of years is the 90 day Bank Bill Rate.
This situation is due to their mistakes, so is this fair or realistic? I thought a more suitable rate would be the rate they charge their clients on overdue loans. Can you suggest how to proceed to receive a fair return on my funds?
A: Thanks for the question.
I don’t think that prima facie, BBSW is an unreasonable rate to pay as it is the industry benchmark.
That said, a lot of commercial agreements where penalty interest might be payable would be based on a commercial overdraft or commercial lending rate. Most banks have benchmarks, for example, MLC’s owner the NAB, has a Business Finance Benchmark (currently 8.47%).
How do you get a higher rate? I guess you just argue and threaten to go to ASIC, Financial Ombudsman and/or your MP – and make a lot of noise.
Hope this helps.
