The Financial Conduct Authority (FCA) has fined Clydesdale Bank (Clydesdale) £8.9m for failing to inform its customers clearly of their rights after the bank miscalculated the repayments on over 42,500 mortgages.
Clydesdale, which is owned by National Australia Bank, has agreed to compensate all those who underpaid on their mortgages as a result of the regulator's action and will write to other affected customers. In April 2009 Clydesdale discovered an error in how it had calculated mortgage repayments for customers with variable rate mortgages. As a result of the error, incorrect repayments were made on over 42,500 customer accounts. Of these, approximately 22,000 accounts were left with shortfalls because customers made repayments that were insufficient to repay their mortgages by the end of...
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