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Ombudsman upholds dual pricing complaint against Abbey

The Financial Ombudsman has upheld the complaint against Abbey National from a customer kept on its higher standard variable rate after it introduced a lower Classic Base Rate Tracker.

Abbey says it is disappointed as it believes it has never operated a dual pricing strategy but to bring the matter to a close it has decided to accept the Ombudsman&#39s decision.

It says in eligible cases it will refund interest from the date the customer first made contact to complain. This will be calculated as the difference between Abbey&#39s SVR and its classic base rate tracker.

It will also give all customers who have complained the option of moving to one of a range of alternative mortgages.

It has withdrawn its Classic Base Rate Tracker mortgage, Bank base rate plus 0.9 per cent, for new business.

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