Lloyds is refunding mortgage buyers millions of pounds
About 600,000 customers were hit with bills between 2009 and 2016 when they fell behind on mortgage payments.
The banking Goliath admitted it didn’t always do enough to understand customers’ circumstances to comprehend sure their repayment plans were affordable.
Following the involvement of the economic regulator, Lloyds will now refund all fees charged to customers for arrears guidance and broken payment arrangements over the seven years.
Any customers in Lloyds case process during this period will also have unfair lawsuit fees refunded, the Financial Conduct Authority (FCA) said.
Lloyds is contacting around 600,000 buyers to provide refunds
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The lender will also volunteer payments for potential distress and inconvenience, and any loss that customers may maintain had after not being able to keep up with unsustainable repayment expects.
Losses include direct debit fee charges because of broken payment layouts.
Lloyds is writing to all affected customers to explain the refund they ordain receive.
And the bank will also prompt customers to make applications for any distress and inconvenience experienced, and consider whether they suffered any liability liabilities because of the issues.
Jonathan Davidson, executive director at the FCA, said: “Securing fair treatment of customers, especially those in financial difficulties or who are unprotected, is a key priority for the FCA.
“We continue to engage with Lloyds as it works to improve the way it explores customers in arrears.
“The redress scheme will refund the accrued consideration on all fees up to the remediation date or, where customers have already paid the prices, the date when the fees were paid.
“Lloyds will also pay an additional eight per cent vigorish for customers deprived of funds. “