You are here: Home - Mortgages - First Time Buyer - News -

Yorkshire Building Society to refund £8.4m to customers

Written by:
Yorkshire Building Society is to pay £8.4m compensation to about 34,000 current and former customers after the Financial Conduct Authority (FCA) raised concerns about incorrect charges.

The lender will refund all administration fees for mortgage arrears since January 2009, with customers expected to receive an average refund of £247 each.

The regulator said some customers may have been charged incorrectly as a consequence of Yorkshire Building Societies’ procedures not being robust enough.

Clive Adamson, director of supervision, said: “The FCA has worked closely with Yorkshire Building Society to get to the heart of this issue and ensure that customers are refunded what they are owed.

“We have been encouraged that they are now putting customers first by paying redress to everybody in arrears, not just those who were overcharged.

“But this is nonetheless a very important reminder that firms must take responsibility for any wrongdoing and make sure their customers get a fair deal.”

Yorkshire Building Society (YBS) has agreed to publish the details of the redress package on its website, making it the first organisation to take this step on a voluntary basis.

The FCA raised concerns with YBS, which includes Yorkshire, Chelsea and Barnsley building societies, and Accord Mortgages, about their processes for dealing with mortgage customers who had fallen behind in their payments.

Firms can only charge an administration fee when a mortgage account falls into arrears by two months or more to cover any administrative costs. YBS found that some of its customers in arrears may have been charged fees incorrectly.

To ensure people do not face lengthy delays and uncertainty in getting redress, YBS has agreed to refund all arrears administration fees charged since January 2009, plus interest on those fees. This means that borrowers who were charged correctly will also receive a refund.

The refund process including letters to customers with details of the exercise will commence on 25 February, and redress will start to be paid from this date.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week