Halifax today announced that they will pay the 300,000 mortgage customers they misled over £500million in ‘goodwill’ payments after confusing wording left customers confused.
The error, which took place between September 2004 and September 2007 saw the bank move the goalposts in effect, increasing the cap above base rate from 2% to 3%.
They didn’t however communicate the change effectively to their existing mortgage customers, leaving some unsure of how the changes worked.
The problems came when the base rate dropped to 1.5% in January 2009, and many customers mortgages remained over 2% above the base rate, leaving them confused.
The bank has struck a deal with the FSA (Financial services Authority) to deal with the complaints, and will contact all 600,000 customers affect by the mortgage blunder, and repay money to half of them.
A bank spokesperson said, ‘The group is committed to running its business with the highest levels of integrity and treating its customers fairly, and therefore believes that a proactive co-ordinated programme to identify affected customers and make goodwill payments is the appropriate course of action.’
The money will make a small dent in the company’s profits, which are due to be announced in the next few days, and are expected to be in the region of £2billion.