Customer Contact and Remediation Programme

Background

We have announced that we are proactively contacting some customers regarding a refund of mortgage arrears fees charged between 2009 and January 2016.

If a customer is struggling to make mortgage payments and falls behind, a payment plan can be agreed to help support them individually. This includes a thorough affordability assessment to check that the new payments are set at an appropriate level.

We identified that some of our policies relating to financial difficulty assessments were not always consistently applied. As a result, we are reimbursing mortgage arrears fees to around 590,000 customers who had fallen behind on their mortgage payments, some of whom may have been inappropriately charged. The vast majority are expected to be paid by the end of 2017.

Do I need to do anything?

If you are due a refund, we will send you a letter advising the amount of the refund, how this will be paid and the contact details of the specialist team that deals with these fee refunds. You do not need to do anything.

Frequently Asked Questions

Here are some FAQs to help you understand more about this customer contact programme.

Background

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What are arrears fees? Why were the fees inappropriately charged? What changes have you made to ensure this doesn't happen again?
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How fee refunds work

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Will you pay interest on this refund? When can customers due a refund expect to get their money back? How will I know if I am eligible for a refund? How will the refunded fees be paid? Will you pay for inconvenience and additional costs?
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Mortgages included in the review

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Which mortgages are included?
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Other questions

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How have you calculated how much to return to me? Why can't I have my money now and why can't you tell me if I will get a refund? Why did you charge these fees? Will I still pay these fees in the future Does this impact me if I have or am going through litigation or repossession? Will I be eligible for a refund even if my mortgage is paid off? The mortgage account holder during that period is deceased. What happens now? Has this affected my credit rating? Could my house have been repossessed wrongly because of these fees? I have moved house and no longer have a mortgage with you? Will you deduct tax from the fee refund?
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Scottish Widows Limited. Registered in England and Wales No. 3196171. Registered office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 181655.

Scottish Widows Unit Trust Managers Limited. Registered in England and Wales No. 1629925. Registered Office in the United Kingdom at Charlton Place, Andover, Hampshire SP10 1RE. Tel: 0345 300 2244. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 122129.

HBOS Investment Fund Managers Limited, registered in England number 941082. Registered office in the United Kingdom at Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 119223.

Scottish Widows Bank is a trading name of Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales, no. 2065. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 119278.

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