HBOS mortgage customers hit by systems glitch
19 October 2006 | 6497 views | 0
UK banking group HBOS is working to fix a processing glitch that resulted in monthly mortgage payments being mistakenly taken from thousands of current accounts on consecutive days this week.
Around 7000 customers of Bank of Scotland - which is part of HBOS, the UK's biggest lender - have been affected by the technical glitch and have had up to three mortgage payments taken from their current accounts this week.
According to press reports HBOS became aware of the problem on Tuesday, after customers whose payments were due on the 14th, 15th or 16th of October complained that had another payment taken from their accounts.
But the bank was not able to fix the problem in time to stop some a third re-payment being taken from some accounts on Wednesday.
Bank of Scotland says it is working to refund all erroneous payments by close of business on Friday.
Earlier this week HSBC admitted that an outage at its data centre on Sunday brought down its network and prevented customers in the South and South West of England from using their debit and credit cards.
The glitch resulted in problems with card reading devices which prevented transactions at ATMs and in shops from being authorised.