Payouts to those affected by the error will be in the ‘low hundreds’ – but one customer has got back over £1,000, according to reports
THOUSANDS of people who took out personal loans with NatWest and sister bank Royal Bank of Scotland are receiving refunds on interest they were wrongly charged.
The banking giant has admitted that an error caused customers who were struggling to repay loans to be charged the wrong amount of interest.
These customers should have been sent a “notice of sums in arrears”, but this did not happen.
If the bank makes a mistake then it is not allowed to charge interest or fees until it sorts it out.
The error occurred between 2008 and 2015. It is thought tens of thousands of people are affected but RBS did not give an exact figure.
The average payout being made is in the low hundreds, but the Daily Mail’s Money Mail said in one letter it has seen, someone was refunded £1,130.75.
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A spokesman for RBS said: “When we discover an issue we do everything we can to set it right.
“We didn’t issue notices of sums in arrears correctly to a number of customers before we charged interest on their loans that had gone more than two payments into arrears. We are refunding these customers the interest we charged them at the time.”
How do you know if you’re due a refund?
The error occurred on loan repayments for thousands of customers between 2008 and last year.
NatWest and RBS is writing to customers who are owed money.
If the customer is now longer with either bank or has changed address then it will use information held by credit reference agencies to track them down.
If you think you’ve been affected and do not receive notification, call RBS on 0345 724 2424 or NatWest on 0345 788 8444.
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