Barclaycard News Update: Three Hundred Customers Refunded
Barclays Loan Customers Get Refund
Barclays News Update: Three hundred customers refunded. Information has been released about mistake in paperwork that will lead to huge customer refunds.
The refund has been triggered by mistakes in administration. Currently the ruling is that if there are such mistakes then all the interest incurred by the customer must be repaid. The errors, in this case, are estimated to cost Barclays about one hundred million pounds and date back to the autumn of 2008. It is anticipated that the bank will contact customers who have been affected by this problem, next month.
In the mean time investigations are taking place to ensure that no other mistakes of a similar nature have happened in other parts of the business like in the banks’ credit card arm Barclaycard. If similar problems are found then it may be that customers of the credit and debit cards might also be in line for refunds.
The matter came to light in the annual results that were published earlier this year. At that time the reports showed that the income from business banking and from retail banking had shown a four per cent drop to just over a million pounds. This was due to the action that had been taken to correct historical interest charges that had been applied incorrectly to the accounts of some customers. A prospectus released recently showed that although there was no question of anyone having been mis-sold to, the customers affected by the problem had every right to have their interest payments returned to them. Barclay’s has also given the assurance that no customer of the bank or the credit card would end up paying more than they should do.
The error in the paper work at Barclays is similar to an earlier problem that occurred in Northern Rock Asset Management. Last year Northern Rock announced that it was making plans to re pay interest paid by some one hundred and fifty two thousand borrowers, after a mistake was made in paperwork.
Updates On Barclays
And that is not the end of the bad news for Barclays as it has also been announced that it will have to pay a fifty million pound fine that has been imposed on it by the FCA (Financial Conduct Authority) after a deal done in 2008 relating to investors from the Middle Eastern state of Qatar which involved incorrect payment to various individuals in connection with a prior share issuance.
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