Tesco Bank refunds customers they've buggered about
This time, Tesco Bank are in a mess, after having to pay out £43 million in compensation, after a loan statement removed cash from 175,000 customers. The bank has issued an apology, wherein they claim a technical breach was behind the cock-up.
Online Tesco Bank went and admitted the breach of industry rules which breached the 1974 Consumer Credit Act - and those who accrued interest on loans during that time must now be refunded - with an average payout of £228. That's a load of people having a nicer Christmas, eh?
Various customers have tweeted about receiving cheques for cash, because there's nothing quite like an overshare on social media about personal finances. Under the Consumer Credit Act, failure to provide prompt ‘post-contractual’ information is viewed as a statutory breach. Any money vendor then has to refund any charges or interest incurred during the period the bank couldn't be arsed.
An understandably nameless Tesco spokesman said: "'As stated earlier in the year, 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."
The bank has already had to set aside £240 million for customers who were miss-sold payment protection insurance.