You are here: Home - News -

Halifax mortgage customers to get compensation

by: Paloma Kubiak
  • 23/10/2018
  • 0
Current and former Halifax mortgage customers are due to receive redress after the bank discovered it made an error in the way interest was calculated.

Tens of thousands of mortgage holders with Lloyds, Halifax and Bank of Scotland are in line for a £20 redress payment after the bank identified that mortgage payments weren’t applied correctly, meaning customers had paid too much interest.

The issue, dating back to 2010, affected those who may have chosen to overpay their mortgage, pay weekly or make one-off payments, so any other deposit other than the regular monthly mortgage amount.

Halifax said that for the majority of customers, the issue meant they overpaid by less than £10, but it has written to affected customers letting them know to expect redress of £20.

If a customer still holds their mortgage with the banks, the £20 will be credited directly to their account.

If they’re no longer a customer, Halifax said it’s made every effort to identify the current addresses of former mortgage holders so a cheque can be sent. Cheques need to be cashed within six months but Halifax added that a new one can always be issued.

A Halifax spokesperson, said: “We have identified a small number of mortgage customers whose payments were not applied correctly, meaning they may have paid slightly more than they should in interest. We have written to impacted customers to apologise and make a payment of £20 to ensure no financial detriment.”

The issue was first reported on MoneySavingExpert after a reader contacted the consumer champion asking if the redress letter from Halifax was a scam.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
UK Finance rejects calls for mortgage lenders to help inform consumers about conveyancer quality

Mortgage lenders will not be offering information to customers about the quality of services offered by conveyancers on their panel,...

Close