£6,300 refund from Northern Rock anyone?
Over 40,000 loan applicants are looking refunds after a legal test case questioned the wording in past loan documents, which means that there's going be be a payout in excess of £258m.
In English, 41,000 customers are going to get £6,300 each and, better yet, the court ruling is going to be applied to the wording and documents of other loans, so this might not be over for a while yet for the lenders.
At the moment, if you think you're entitled to a refund, you don't need to act. There's further legal action to be taken which is going to hold things up, but those that will be getting money will be contacted by letter, with advice of what happens next.
The loans in question related to "Together" mortgages, which were offered by Northern Rock and permitted unsecured loans of up to £30,000 alongside your mortgage, repayable at the same rate.
Many took up the offer and took out unsecured loans of between £25,000 and £30,000 between 1999 and 2008, and it is those customers that will be paid back interest and fees.
We'll be keeping an eye on this one, and seeing which other companies come a cropper of the new ruling.