Members LiveMusic Posted August 28, 2006 Members Share Posted August 28, 2006 I need your help. Need for you to give your opinion on a number if you can. I posted something about a year ago about my mother getting overcharged on her water bill. For 24 years. Could be close to a settlement. After much study, I think I have a decent idea of how much they overcharged her. In the thousands of dollars over 24 years. (NOT including interest, just regular dollars.) But I think that they should pay interest. They charge YOU 10% per MONTH if you are late! Others have mentioned similar court settlements (which I have not actually read about) and it was mentioned that the final settlement should factor in the time value of money -- that if you invested this overdcharge in some kind of yield-bearing account, that this is fairer to the customer. I think a judge would easily agree. The question is... how much? To me, low end would be passbook savings account rate. I have researched this and from 1981 through 2005, the average is about 5.3%. However, my father regularly invested in the stock market, so, it could be argued that a mutual fund average or the DJIA should be used. This is a small town but what's right is right. So, what is right? If you have any opinion at all, please give an interest. In other words, what interest/yield (%) would be fair to a customer who was overcharged? Due to the magic of compound interest, an overcharge gets to be a hefty sum of money over 24 years. I cannot find definitive numbers of how much investing in the DJIA would yield on an annual basis, 1981 - 2005. I do know it was about 1,000 in 1981 and now, it's 11,000 or so. Point being, I just have to come up with some kind of annual yield/interest percentage. To plug into my calculator. Link to comment Share on other sites More sharing options...
Members philbo Posted August 28, 2006 Members Share Posted August 28, 2006 I would think there are surely legal precedents that would indicate whether there is any chance for this. My guess is 'no'... just because it would be fair, and that is not the way our legal system is biased.... But you are probably wasting time asking here, you really should be talking to your lawyer about it. Link to comment Share on other sites More sharing options...
Members LiveMusic Posted August 28, 2006 Author Members Share Posted August 28, 2006 Originally posted by philbo I would think there are surely legal precedents that would indicate whether there is any chance for this. My guess is 'no'... just because it would be fair, and that is not the way our legal system is biased.... But you are probably wasting time asking here, you really should be talking to your lawyer about it. There ARE legal precedents. But neither I, nor my mother, are prepared to sue them. Yet. That would only happen if we can't come to an agreement. I just thought people would have an opinion about how much interest/yield to factor in for the "opportunity costs" or whatever that financial term is called... it cost her over 24 years... it "cost" her in the way of... she could have invested that amount each month. I would think any judge would rule in favor of the little old lady. Link to comment Share on other sites More sharing options...
Members MorePaul Posted August 28, 2006 Members Share Posted August 28, 2006 Originally posted by LiveMusic There ARE legal precedents. But neither I, nor my mother, are prepared to sue them. Yet. That would only happen if we can't come to an agreement. Looking at general legal precedent could be problematic as you are in Louisiana Link to comment Share on other sites More sharing options...
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