Another Mortgage Billing Scandal – Entitled To Interest Rate Refund?
Last week we brought you the news that in 2014 it was publicly announced in a Belfast Court that Lloyds Banking Group had been unfairly double billing customers who fell behind on their mortgages.
This banking group includes the like of Bank of Scotland plc, Birmingham Midshires, Cheltenham & Gloucester, Halifax plc, Lloyds, Intelligent Finance, and The Mortgage Business (TMB).
Further revelations have been made in respect of these banks and the way they charged interest to all customers in 2013 – whether or not you were in arrears.
Basically, this Group of banks changed their computer system during the period and in addition looked in particular at how they charged interest to customer accounts.
It appears from recent statements that I have reviewed, during the period 2013-2014, we have identified subsidiaries of Lloyds Banking Group decided to change the way in which they charged their customers. They wrote out to them to this effect.
I have identified significant interest rate charges to a client’s account during this period that has had subsequent detrimental impact on the client’s mortgage balance and interest calculations carried forward.
In effect, the bank has overcharged them during the year and by way of carrying forward incorrect balances, continued to overcharge them in subsequent years. A full account review is now currently in progress to calculate how much my client should have returned to them.
To be clear, this customer was not in arrears and never missed a mortgage payment. If you are with this bank or any of its subsidiaries, subject to your circumstances, you may now also be entitled to financial compensation due to their actions.
This migration of the bank to a new computer system appears to have caused the problem, however, the question I ask is how many customers are affected and have not noticed.
Without reviewing your documentation we cannot guarantee you have been affected but we encourage everyone in the UK who had a mortgage with Lloyds Banking Group during 2013-2014 needs to get in touch with us now on 028 92 444 555.