Yorkshire and Clydesdale Customers Should Go to Ombudsman if They Feel Badly Treated
The mortgage customers that were a part of the computer glitch that caused Yorkshire Bank and Clydesdale Bank to undercharge interest payments are finding that the banks plan to recoup the funds by raising their payments. Some customers might have to pay 200 pounds more a month.
The problem began in 2005 when the bank made changes to the interest rate of certain loans. The bank has written customers and offered a variety of ways for them to repay the shortages. They may pay with a lump sum, by extending the term of their mortgages or by paying more each month. While the banks, both owned by National Australia Bank, fully plan on collecting the entire amount of the shortfall, many feel it was the banks fault and they should pay for their own mistake. For those that feel confused about the Bank’s plans or feel badly treated experts recommend they contact the Financial Ombudsman Service. Melanie Bien, director of mortgage broker Private Finance said: "It’s a shame the bank hasn’t decided to wave the shortfalls as a gesture of goodwill, particularly as the borrowers have been underpaying through no fault of their own." The Bank however does plan on getting back the 19 million pounds under charge mistake from its customers and told shareholders that there would be "no negative earnings impact" as a result of the mistake.