Barclays to compensate 300,000 borrowers after paperwork error

17 - 09 - 2013

Barclays Bank is to refund around 300,000 customers because it miscalculated the interest owed on personal loans.

The mistakes, which relate to arrears notices and statements and were made on paperwork as far back as October 2008, are estimated to cost the bank at least £100m.
Barclays announced it would start to contact the affected borrowers in the next month. Each borrower could receive an average of £330 in compensation.
It is not yet known whether customers of other divisions, such as Barclaycard, Barclays Wealth and Barclays Corporate, have been affected by the errors. A review of these divisions is now under way.
In a statement, Barclays said: ‘whilst no-one has been mis-sold to, customers are entitled to have their interest payments returned’.
‘No customer will pay more than they were ever contractually expected to.’
The errors, which were mentioned with the bank’s annual results in February, were further detailed in a prospectus released by the bank as part of its efforts to raise £5.8bn from investors.

The prospectus also contained the news that the bank has been fined £50m by the Financial Conduct Authority (FCA) for its 2008 investment deal with Qatari investors.







Foremans LLP Umberlla
Foremans LLP