Anorak News | Bank Make Too Many Errors Says Jim Cousins MP

Bank Make Too Many Errors Says Jim Cousins MP

by | 28th, May 2007

A LABOUR MP on the Treasury select committee has claimed that a large number of homeowners are being overcharged by mortgage lenders because of apparent errors in the calculation of interest owed.

Jim Cousins’ claims follow a review by auditing firm BankCheck, which found that the likes of the Nationwide, Alliance & Leicester and Abbey have been benefiting from these blunders with repayment mortgages apparently the most prone to the mistakes.

Cousins now wants a new banking code of practice in which customers’ repayments are checked regularly by the lender.

However – surprise surprise – the banks have refuted the claims.

Abbey says: “Checks are built into our mortgage processes. We are confident that this process is robust.”

The Nationwide puts it: “Mistakes occur in a minimum of cases but we have confidence in the integrity and accuracy of our systems”.

Alliance & Leicester did admit to one such mistake in which a man was overcharged by 0.5 per cent over 15 years, costing him over £2,000, which was eventually refunded. However, they blame the fact that when the mistake initially occurred back in 1984, their system relied on typewriters rather than today’s apparently failsafe computer system.

Sure. Only aren’t the same people who used to type now working on the computer? And odd how these mistakes favour the lender…

A hotel in St Ives has been given a public slap on the wrist by the Royal Mint after using pound coins as promotional items.

Posted: 28th, May 2007 | In: Money Comment (1) | TrackBack | Permalink