1st January 1999
Money Marketing reported that Halifax is to write to approximately 600,000 customers from April 2011 regarding potential confusion relating to wording found in the mortgage offer document which summarises the Halifax standard variable rate cap.
The review affects borrowers who were on SVR and who had an early repayment charge in their mortgage.
The bank will offer goodwill payments of £250 to borrowers on SVR and who had an ERC as an acknowledgement that it was unclear how the cap affected their mortgage.
It will also offer a goodwill payment of the 1 per cent balance between the two cap rates to those borrowers on SVR who were unaffected by the change but thought they were.
In an announcement made to the London Stock Exchange Lloyds Banking Group said the review was with "regard to outstanding concerns with the variation of limits of some retail mortgage contracts".
Citywire reported that the wording in the mortgage offer documents received by these customers had the potential to cause confusion.
The announcement said: "The relevant mortgages were written during 2004 – 2007 by Bank of Scotland plc under the 'Halifax' brand, and through the contact programme, goodwill payments will be made to affected customers.
"To effect these goodwill payments, Bank of Scotland has applied for a Voluntary Variation of Permission to carry out the customer review and contact programme to bring it within section 404F (7) of FSMA 2000."
On Citywire JonnieB666 writes: "The wording in the FSA handbook also has the potential to cause confusion. Any chance that can be reviewed? Two chances……none & f*&k all!
Tony Clarkin said: "Regulator re- arranges the deckchairs on the Titanic (again)
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