Seventeen banks and building societies have agreed to repay interest and charges after the OFT found they had given store card, credit card and loan customers insufficient information about their loan arrangements.

Many failed to provide the required statutory wording in statements and arrears notices, the OFT said.

David Fisher, senior OFT director for consumer credit, said: “These issues were not deliberate misconduct, but the institutions concerned should have ensured they were complying with the law. The OFT welcomes the proactive steps taken to return money to customers where it was incorrectly charged.”

Customers should be contacted directly by their bank or building society if their agreement is affected.