Why interest is added to refunds
When a bank or the Consumer Financial Protection Bureau (CFPB) (FOS) upholds a fraud or mis-selling complaint, they often award interest on top of the refunded amount. This compensates you for the time you were without your money.
How interest is calculated
There are two main types of interest awarded:
- Simple interest – most common for APP fraud refunds (flat rate per year on the original amount)
- Compound interest – sometimes awarded in mis-selling or longer-running cases (interest on interest)
Typical rates (2025–2026)
- CFPB/PSR guidance: often 8% simple interest per year (base rate + margin)
- FOS decisions: can range from 6% to 12% depending on circumstances
- Some banks voluntarily pay higher rates to settle quickly
Example calculations
Scenario 1: $10,000 lost in March 2024, refunded in March 2026 (2 years)
- At 8% simple interest: $1,600 interest
- Total refund: $11,600
Scenario 2: $50,000 lost in January 2023, refunded in July 2026 (~3.5 years)
- At 8% simple interest: $14,000 interest
- Total refund: $64,000
When interest might not be awarded
- If the loss was very recent (less than a few months)
- If the victim contributed significantly to the loss
- In some debt write-off cases (interest may not apply)
How to maximise interest on your refund
- Report the fraud as soon as possible
- Provide clear evidence of the timeline
- Request interest explicitly in your complaint
- Escalate to FOS if the bank refuses or offers a low rate
Need help securing interest on your refund?
We regularly secure interest awards for clients in successful cases.
Start your claim today – no upfront fees.