£149 million to be repaid to bank and building society customers
Seventeen banks and building societies have agreed to repay an estimated £149 million in interest and charges to around 497,000 customers, following action by the Office of Fair Trading.26 March 2014
The money is to be repaid because the banks and building societies concerned did not provide customers with some of the post-contractual information about their credit agreements, as required by the Consumer Credit Act 1974. For example, many failed to provide the required statutory wording in statements and arrears notices.
Since October 2008, lenders must send periodic statements to customers containing specific information and wording. If a debtor falls into arrears by more than two payments, the lender must alert them to that fact and the potential consequence of falling into arrears.