Northern Rock accused borrowers of late mortgage repayments
January 2, 2008
Stricken bank Northern Rock has made a blunder, after wrongly accusing thousands of its customers of being late with their mortgage repayments. The bank, which was the fifth largest mortgage lender in the nation but recently became the victim of the first run on a British bank in 150 years, told thousands of borrowers that their mortgage repayments were overdue. Many customers that pay their mortgage repayments by standing order received a letter asking them to pay as soon as possible because the repayment was overdue.
The bank wanted to avoid any possible postal delays, so it wrote to all customers, including those whose payment was not yet due, stating that they needed to make their mortgage repayments as quickly as possible.
Following the mailing Northern Rock has apologised for any confusion caused by the incident. One borrower explained how he had to make an immediate payment on his card to put the situation right after receiving one of the letters from Northern Rock.
He stated: “I can imagine some people will be panicked into paying on their debit card, then the standing order will go through and they will have paid twice. It’s a cash-flow game and I don’t think it’s appropriate.”
However, officials from Northern Rock have stated that there was certainly no intention of making customers pay more than they were due to pay by sending out these letters.
One Northern Rock official stated: “During December a pre-emptive mailing was sent out to all customers who pay by standing order due to the amended post days. We apologise for any inconvenience caused.”
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