Refund for Tesco loan customers (your bank might too)

tesco bag More woe for Tesco, but great news for those who bank with them!

Tesco Bank is set to pay out £43million in compo after a loan statement cock-up saw 175,000 customers out of pocket. The bank failed to send out personal loan and credit card statements and those to bank with Tesco were illegally charged interest on loans

The good news is that anyone who accrued interest on loans during the time of the error will now be refunded, with the average payout of £228.

Some customers have already got their cheques. On Twitter, Stuart Gibson wrote: "Apparently Tesco bank forgot to send me an annual statement for five months on a loan I had. So they've sent me £450 instead. That’s nice."

A Tesco spokesman said: "We have put in place a redress programme to return interest and charges to customers who did not receive documentation in line with the requirements of the Consumer Credit Act. This redress programme has commenced and we are writing to all of those customers affected. Customers do not need to take any action however if they do have questions they can contact us as normal."

"It's not an incident of mis-selling. This is an industry-wide issue."

Other banks and building societies are in the process of sorting this all out too, with the Office of Fair Trading confirming that there'll be just shy of 500,000 people set to get a cheque as a result of the Consumer Credit Act balls-ups.

We'll keep an eye on things and let you know, so you can chase your bank up if they try pulling a fast one.


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