N Rock forced to pay £270m to loan customers

  • Over 152,000 Northern Rock Asset Management customers in the UK are likely receive hundreds of pounds as a for compensation errors made in the paperwork by the company. Customers with personal loans of less than 25,000 are likely to receive about 1,775 each. Most of these loans were provided on Northern Rock's Together mortgage - previously a very popular option for homebuyers requiring mortgage. The decision to refund the customers was taken after it was discovered that the bank had failed to include essential details on annual statements such as the original amount borrowed. A number of customers will now refunded the interests charged on loans since October 2008 and those who have closed their loans will receive checks with due interest, N Rock said. The debacle will cost taxpayers 270m since the UK government owns this section of the bank since 2008.