Halifax to pay £500m to mortgage customers

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How much more needs said about Financial Services and lack of trust?

In short “goodwill” is a sick joke and payments being “agreed after a deal with FSA”  smack of the NEED to avoid transparency…am I wrong or was it not the RESPONSIBILITY of FSA to protect the public from just these kind of FS mistakes and similar banking errors.

Would it be too unkind to speculate that this may be to do with the fact that payments should be even greater than the mere £500,000,000 quoted here?

That is another whopper of a mistake.

How many jobs will this account for?

DO we know what the true cost to customers was?

Who “owns” this bank anyway?


The Halifax is to make “goodwill” payments to 300,000 mortgage customers that will total up to £500m.

The bank, now part of Lloyds Banking Group, admitted confusing customers about its right to charge them more for their standard variable rate mortgages.

The Halifax raised the margin on some of these mortgages from 2% to 3% above base rate in January 2009.

The payments to the customers have been agreed after a deal with the Financial Services Authority (FSA).

“The group is committed to running its business with the highest levels of integrity and treating its customers fairly, and therefore believes that a proactive co-ordinated programme to identify affected customers and make goodwill payments is the appropriate course of action,” Lloyds said.

via BBC News – Halifax to pay £500m to mortgage customers.

3 Responses to Halifax to pay £500m to mortgage customers

    The Financial Ombudsman Service (FOS) yesterday reported a 15 per cent increase in the number of complaints about financial services firms in the final six months of 2010. Lloyds Banking Group racked up the most complaints (22,187), although the high figure also reflects its status as Britain’s biggest bank. There were 12,234 cases relating to Lloyds TSB alone. Bank of Scotland, also part of the group, accounted for 6,743 complaints. RBS, including NatWest, attracted 8,644 complaints, placing it second behind Lloyds.

  2. If anyone is interested and just hasn’t gotten round to formulating their input(!) let me share this with you.

    As it is from, probably, their most high profile former employee, it may save some embarrassment: http://www.youtube.com/watch?v=gk6727w8g-w

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