Unjust enrichment - arrangements for reimbursing consumers: Statutory interest
Statutory interest is a payment which must be made under specific legislation or a court ruling.
For APD, statutory interest falls within the scope of the scheme, and is subject to the same terms and conditions as any other money reimbursed under the scheme. It must be refunded to the consumers, because it was the consumers who did not have use of the money, not the claimant who collected it from them to pay to us. Any statutory interest must be refunded in full; any amounts not reimbursed must be returned to us within the specified time limit.
It may be difficult for a business to divide interest among its customers, because some of the sums involved may have been paid earlier than other amounts. The regulations do not specify how this problem can be overcome. One answer may be by giving the business a printout of the statutory interest calculation, which calculates simple - rather than compound- interest on a period by period basis. It would then be a relatively straightforward matter for the business to divide interest payable into the amount overpaid for that period. This should determine roughly what is due to consumers for that particular period.