Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Northern Rock to pay clients £270m after admin gaffe

Northern Rock to pay clients £270m after admin gaffe

State-owned lender Northern Rock is being forced to repay £270 million to customers due to an administrative error committed in 2008, according to reports.

The bank will hand an average payment of £1,800 to more than 150,000 customers, after failing to comply with disclosure rules on credit balances.

Economic secretary to the Treasury Sajid Javid said that customers had not been overcharged, but that refunds were due because 'certain paragraphs of mandatory wording were written incorrectly and compulsory information about the amount of credit was not included in the statement'.

The customers affected are almost all those who took out 'Together' unsecured credit alongside mortgages, which allowed them to borrow as much as 125% the value of their properties.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Neil Gregson: gold is prettiest in ugly contest

Neil Gregson: gold is prettiest in ugly contest

The JP Morgan Natural Resource fund manager talks about the prospects for gold with plenty of uncertainty in the global economy.

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter