Northern Rock's £270m blunder

Around 152,000 Northern Rock customers will receive hundreds of pounds each in refunds over incorrect paperwork in loan deals.

Latest ITV News reports

Labour: Osborne failed to mention Northern Rock payout in Autumn Statement

George Osborne’s smoke and mirrors in last week’s Autumn Statement continue to be exposed.

Now the Treasury has admitted that public sector net borrowing will be £270 million higher this year as a result of mistakes at Northern Rock.

But this figure was not revealed to parliament last week or in the official forecasts, even though the Treasury has admitted it knew about this problem in October.

It’s time George Osborne started being honest with people.

No amount of trickiness with the figures can disguise the fact that his failure to deliver jobs and growth means he is borrowing billions more than he planned.

– Shadow Treasury Minister Chris Leslie MP

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Northern Rock: 152,000 customers to receive compensation

by - Former Business Editor

Some 152,000 customers will get a total of £270 million compensation after mistakes by remnants of Northern Rock.

Northern Rock Asset Management, the publicly owned bit, made mistakes on loan documents between 2008 and now, so customers will get interest back.

If you had a loan with them you will be contacted in coming days to see if you will get compensation. It's a major embarrassment.