Lloyds mortgage compensateion

by jss64 Thu Jul 27, 2017 6:49 pm

590,000 Lloyds customers to get £480 back each - who qualifies and what Lloyds did wrong.

http://www.msn.com/en-gb/money/news/590000-lloyds-customers-to-get-%C2%A3480-back-each-who-qualifies-and-what-lloyds-did-wrong/ar-AAoTC9f?li=BBoPWjQ&ocid=mailsignout

Lloyds Banking Group has said it will refund all fees charged to customers who fell behind with their mortgage payments between 2009 and 2015.

Around 590,000 people are expected to get money back - sharing £283million in compensation between them - or £480 each on average.

Related: Lloyds takes £1bn hit for PPI and mortgage arrears

Jonathan Davidson, from banking regulator the FCA, said: “Ensuring fair treatment of customers, especially those in financial difficulties or who are vulnerable, is a key priority for the FCA.

"We continue to engage with Lloyds as it works to improve the way it treats customers in arrears.”

What Lloyds did wrong
When customers fell behind with their mortgages, Lloyds charged fees for arrears management and broken payments.

In some cases they also entered a litigation process - and charged fees for that.

The problem was that they didn't do enough to check their repayment plans were affordable first, and that put people in trouble - denying them funds as well as causing distress and inconvenience.

What they're handing back
After talking to the FCA, Lloyds said it will refund all fees charged to customers for arrears management and broken payment arrangements from 1 January 2009 to January 2016.

Anyone pushed into its litigation process in that period will also get unfair litigation fees back.

The bank has also said it will offer payments for distress and inconvenience - as well as money lost because people couldn't keep up with unsustainable repayment plans.

Oh, and that also includes interest on the fees and an extra 8% interest for customers deprived of funds.

What happens next
Lloyds will write to all affected customers to explain the refund they will receive and to prompt them to make a claim for any distress and inconvenience they may have experienced.

Lloyds will also advise customers to consider whether they suffered any consequential losses as a result of this issue, such as a direct debit fee charged because of a broken payment plan.

Customers do not need to take any action until they are contacted by the bank.

Shouldn't this apply to credit cards and loans as well?