Have you had a mortgage with Halifax any time in the past eight years? You could be sent £20
- Halifax to send £20 redress to potentially thousands of customers
- The bank may have overcharged interest to mortgage holders
- Bank claims the ‘vast majority’ of customers saw a detriment of less than £10
Halifax is set to offer potentially thousands of mortgage customers a redress payment of £20 each after an error in the way interest is charged went unnoticed for eight years.
The bank has identified what it describes as a ‘small number’ of customers whose mortgage payments were not applied correctly.
It may potentially have overcharged any mortgage customer who chose to pay their mortgage weekly, make a one-off payment, or overpay their mortgage since 2010.
Halifax is to send a £20 redress payment to tens of thousands of customers following an error
Halifax claims that the ‘vast majority’ of customers saw a detriment of less than £10, and said it has written to those affected to notify them of their redress payment.
A spokesperson for the bank said: ‘We have identified a small number of mortgage customers whose payments were not applied correctly, meaning they may have paid slightly more than they should in interest.
‘We have written to impacted customers to apologise and make a payment of £20 to ensure no financial detriment.’
In 2011, Halifax had to pay out £500million in compensation to over 600,000 customers after it failed to inform them that it was increasing the rate it charged on its standard variable rate mortgage.