Customers Successfully Quash Mortgage Arrears

A number of customers with the Yorkshire and Clydesdale banks, who were not charged enough for their mortgages, have successfully blocked their creditor’s demands to pay the arrears. The banks, who are owned by Australia Bank, stated the capital payments had been incorrectly calculated for the previous 2 years as interest rates dropped. The customers, who took their complaints to Financial Ombudsman Service, argued that they were now being asked to pay higher amounts of interest on the unpaid capital than they would previously have needed to had the bank not miscalculated. A spokesperson from the Yorkshire bank commented that “The vast majority have accepted it was a genuine mistake and their payments are changing to reflect that”.

The Ombudsman service was quoted as saying that where the lender is entirely at fault the arrears should be cancelled.

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