£250 refunds for 34,000 Customers of Yorkshire and Chelsea building societies

[ukaviator]

Customers of Yorkshire and Chelsea building societies to receive refunds of arrears charges in £8.4m windfall

 

About 34,000 mortgage borrowers with Yorkshire Building Society are to receive refunds averaging almost £250 each after mistakes were made in the calculation of mortgage arrears charges. In all, about £8.4m will be paid to the customers affected, some of whom have mortgages with Chelsea and Barnsley building societies and Accord Mortgages, which are all part of the Yorkshire group. Borrowers will receive an average of £247.

 

The group is to refund all mortgage arrears administration fees charged since January 2009 and interest on those fees, even to customers who were not affected by the mistakes in calculation. The problem came to light when the City regulator, the Financial Conduct Authority, questioned whether Yorkshire's procedures were robust enough. The society then reviewed its treatment of some customers who had been charged arrears administration fees.

 

More: http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10640632/250-refunds-for-34000-building-society-borrowers.html

[jodyperry]

Hi I have received a letter this morning saying a refund of 600 will be credited to my account. Surely as these may or may not be correct charges, I am within my rights to ask that they refund them in the form of a cheque? I understand that I will not be paying interest if it's added to my capital account but this is money that would of been in my pocket had they not wrongfully charged it? Or were the charges added to my capital balance also? I a bit confused but would sooner have the money throw than benefit in 15 years?

[jodyperry]

Hi I have received a letter this morning saying a refund of 600 will be credited to my account. Surely as these may or may not be correct charges, I am within my rights to ask that they refund them in the form of a cheque? I understand that I will not be paying interest if it's added to my capital account but this is money that would of been in my pocket had they not wrongfully charged it? Or were the charges added to my capital balance also? I a bit confused but would sooner have the money throw than benefit in 15 years?

 

Have I put this question in the right place admin ?

[stu007]

Hi jodyperry

 

Yes your question is in the correct place and relevant to this thread as others many be asking the same thing.

 

So please be patient as I am sure the caggers will be along.

[citizenB]

I have copied this thread to the Yorkshire /Clysdale Bank forum as well

[citizenB]

Hi I have received a letter this morning saying a refund of 600 will be credited to my account. Surely as these may or may not be correct charges, I am within my rights to ask that they refund them in the form of a cheque? I understand that I will not be paying interest if it's added to my capital account but this is money that would of been in my pocket had they not wrongfully charged it? Or were the charges added to my capital balance also? I a bit confused but would sooner have the money throw than benefit in 15 years?

 

They do say in the announcement that only those who are no longer customers and have no balance on their mortgage will receive a cheque. All other victims will have the money knocked off the outstanding balance.

 

I wonder if an argument could be made that if the charges have actually been paid and are not still showing as arears on the mortgage that you could request the cheque be paid to you. Others with more knowledge would need to look into that for you.