It's another Barclays balls up
300,000 Barclays customers are set to get a little bonus after the bank admitted to making mistakes on the paperwork for thousands of personal loans. If there are errors in the paperwork, it’s the law that all interest should be paid back.
It’s going to cost Barclays around £100m to recify the mistakes, which go all the way back to 2008. The errors were mentioned in the bank’s annual results in February, and again in a recent prospectus, which stated that their ‘income declined 4% to £1,086m primarily due to provisions taken to remedy historical interest charges incorrectly applied to customers.’
A quivering guy in a suit from 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.’
It’s the latest in a catalogue of catastrophic errors from the bank. As well as this, they did some dirty secret double dealing with investors from Qatar, and are facing a £50 million fine after making secret, under the table payments that didn’t appear on the books. They’re also paying back £290m for trying to manipulate Libor and doling out millions in compensation for mis-sold PPI and credit card insurance.
BAD BANK. GO TO YOUR ROOM.