The Lloyds Banking Group-owned lender began contacting customers after discovering that it had either charged them too much, too little or in some cases both on different months during 2018, reported MoneySavingExpert.com.
A spokesperson for Lloyds Banking Group said that all of the affected customers had been contacted and compensation paid. “This has been fixed,” she told Mortgage Solutions.
The bank has not said how far back the miscalculations run or how many of its 420,000 mortgage customers were hit.
The Financial Conduct Authority has been informed about the cases.
MoneySavingExpert.com reported that one customer received more than £1,600.
Other customers took to Twitter to have their say.
Tim Guest, @Guest909, welcomed the unexpected windfall in February 2019. “Paid off a mortgage with Birmingham Midshires 4 years ago. Received a £260 cheque yesterday for interest they owed me. What a nice surprise! Good work @AskLloydsBank.”
Just John, @emptyjamjar, wrote in August 2018: “Anyone who had a mortgage with Birmingham Midshires and since moved might want to contact them. We got letter out of the blue with cheque (small) as calculated interest incorrectly. Assume this was part of wider review. #BirminghamMidshires”
The lender has reduced mortgage balances to where they should have been for customers who underpaid. For those who overpaid, it has made compensatory interest payments either to the customer’s mortgage account or direct to them. Some customers have received a balance reduction and a compensatory payment.