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Court of Appeal overturns £261m Northern Rock redress case


The Court of Appeal has reversed a decision that that would have seen 43,000 Northern Rock borrowers paid total compensation of £261m.

In December, the High Court ruled that Northern Rock Asset Management should pay an average of £6,000 in refunded interest to borrowers who took out the infamous “Together Mortgage”. This allowed consumers to borrow up to 125 per cent of a property’s value.

The High Court ruled paperwork relating to unsecured loans of between £25,000 and £30,000 taken out between 1999 and 2008 was incorrect, and customers should be paid back interest and fees.

But the BBC reports the Court of Appeal has now reversed that decision.

In 2012, Northern Rock had to pay £270m in compensation for the same error, but only refunded those with loans of less than £25,000.



Northern Rock borrowers win £261m High Court case

Northern Rock borrowers are set to receive £261m in compensation after winning a High Court case against the former bank. Northern Rock Asset Management, the nationalised “bad bank”, will have to pay an average of £6,000 in refunded interest to 43,000 borrowers. The case relates to Northern Rock’s infamous “Together Mortgage”, which allowed consumers to […]


FCA fines ex-Bradford & Bingley finance director £30k

The FCA has fined former Bradford & Bingley group finance director Christopher Willford £30,000 for failings ahead of a rights issue at the height of the financial crisis. The regulator says Willford failed to provide the board with up-to-date information about B&B’s financial position. The final penalty has been reduced from £100,000 to £30,000 following […]

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