Barclays to issue refunds to loan and credit card customers
Barclays is writing to affected customers. Refunds – which are an average of £300 – will cover interest, fees and charges. They may be repaid or given in the form of a debt write-off for those still borrowing from the group. The refunds will happen automatically.
The current Financial Conduct Authority rules state that if a customer is in default or in arrears difficulties, the lending firm should, where appropriate, inform the customer that free and impartial debt advice is available from not-for-profit debt advice bodies and give them details.
Barclays admitted it didn’t always contact customers in arrears in accordance with its own processes. As such, it didn’t always assess their circumstances or offer them different repayment options.
Barclays said: “We’re sorry and we want to make things right, so we’re returning interest and charges to those who might have been affected during this time.”
Click to find out more information on loans