21 August 2017
visit www.avoka.com

Systems error sees Clydesdale Bank mortgage complaints soar

28 February 2011  |  6544 views  |  0 wrong way

Complaints have flooded in to the Financial Ombudsman Service about Clydesdale Bank over the last six months after a botched systems tweak that saw the firm miscalculate mortgage repayments for thousands of customers.

The ombudsman received 410 mortgage-related complaints about the NAB subsidiary in the second half of 2010, up from just 66 in the first six month of the year.

The sharp rise is largely down to a calculation error caused by a systems tweak - revealed last summer - which resulted in around 18,000 variable rate mortgage customers underpaying. They are now being asked to make up the difference.

Across the industry as a whole, the ombudsman received 97,237 complaints during the past six months, up 15% on the first half of the year. The service upheld an average of 53% of complaints in favour of consumers, compared to 44% in the first half.

Lloyds Banking Group accounted for over 22,000 complaints, with Royal Bank of Scotland, Barclays and HSBC all racking up over 8000.

Natalie Ceeney, chief executive, Financial Ombudsman Service, says: "The latest set of complaints data continues to show that while some financial businesses are improving the way they handle their customers' complaints, some regrettably are not."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

RBS and NatWest fined £2.8m for poor customer complaint handling

RBS and NatWest fined £2.8m for poor customer complaint handling

11 January 2011  |  8499 views  |  0 comments
How to get money back from a bank: sue them - Ross Anderson

How to get money back from a bank: sue them - Ross Anderson

30 March 2010  |  11464 views  |  4 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.dorsum.euvisit www.worldpaymentsreport.com

Who is commenting?

A Finextra member Finextra Member Commented on: Real-time payments in...
A Finextra member Finextra Member Commented on: Barclays uses sensors...

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
11606 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
9904 views comments | 22 tweets | 31 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
9693 views 0 | 5 tweets | 1 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
9399 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
9365 views comments | 10 tweets | 8 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job