Barclays Bank to refund loan customers after paperwork blunder
SOME 300,000 customers who took out loans with Barclays Bank may get some money back due to a blunder on paperwork.
The rules say any interest paid must be returned if there is an error on loan paperwork. And Barclays Bank has revealed that is what will happen in some cases dating back to October 2008.
The error is expected to cost the bank about £100 million.
The news was contained in a prospectus released to investors yesterday.
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The bank told the BBC: "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 prospectus also mentions warning notices against the bank being launched by the Financial Conduct Authority over an investment deal with Qatari investors in 2008.
If the authority's allegations are proved, it carries a £50 penalty. Barclays said it is contesting the findings.