Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a645019
Northern Rock to pay clients £270m after admin gaffe
by Daniel Grote on Dec 12, 2012 at 08:29
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.
News sponsored by:
Subscribe to Wealth Manager magazine and rack up CPD points
Citywire Wealth Manager has partnered with CISI to enrich the experience of subscribers to our magazine.
Today's top headlines
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
by Dylan Lobo on May 20, 2013 at 08:16