Barclays blunder costs £100m

A £100m paperwork error made by Barclays will result in more than 300,000 customers who have taken loans with the bank each receiving a refund for hundreds of pounds.

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OFT welcomes Barclays' refund to customers

The Office of Fair Trading has said it welcomes Barclays' move to ensure that customers who have taken loans with the bank are fully compensated following a costly technical error.

Next month, Barclays will shell out £100 million and repay more than 300,000 customers with a refund of hundreds of pounds each after the bank admitted it had incorrectly charged interest.

We urge other lenders to make sure they are complying with their legal obligations under the Consumer Credit Act and take remedial action if necessary.

We urge other lenders to make sure they are complying with their legal obligations under the Consumer Credit Act and take remedial action if necessary.

– OFT spokesman

Barclays admit errors over paperwork inaccuracies

Barclays have described the paperwork blunder which will cost the bank £100 million next month as "technical documentary errors".

The error means the bank will have to pay 300,000 customers who have taken loans with the bank a refund of several hundreds of pounds each.

In a document Barclays confirmed it had identified "issues" with information contained in statements and arrears notices relating to customer loan accounts.

Barclays has proactively reviewed information it has historically sent to its customers relating to interest charges where we have found technical documentary errors. As a result Barclays has identified certain issues with the information contained in some statements and arrears notices relating to consumer loan accounts.

Due to these notification errors, interest was not due on certain accounts during the period that Barclays made this mistake, and whilst no one has been mis-sold to, customers are entitled to have their interest payments returned. No customer will pay more than they were ever contractually expected to.

– Barclays spokesman

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Paperwork blunder to cost Barclays £100m

Document errors made by Barclays reportedly go back five years. Credit: Joe Giddens/PA Wire

A £100m paperwork error made by Barclays will result in more than 300,000 customers who have taken loans with the bank each receiving a refund for hundreds of pounds.

According to The Times, Barclays admitted that it had incorrectly charged interest to people making personal loans after making mistakes on documents.

Customers will receive the refund next month as the errors are in breach of the Consumer Credit Act.

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