View more on these topics

Ruling leaves Abbey Nat facing £10m payout

Abbey National faces payouts totalling up to £10m to 20,000 customers after the Financial Ombudsman upheld a complaint over mortgage pricing.

The ruling against Abbey&#39s “dual-pricing” policy follows a customer complaint that a cashback mortgage deal remained linked to the standard variable rate of 7 per cent despite offering its cheaper Classic base rate tracker mortgage, running at 0.9 per cent above Bank of England base of 5.5 per cent at the time.

Abbey says it is disappointed as it does not believe it has operated a dual-pricing policy but it will accept the decision.

It withdrew the Classic base rate tracker last week following the decision.

It is contacting other customers who have complained and says, in eligible cases, which it estimates will be less than 1 per cent of its two million borrowers, it will refund interest from the date the customer first made contact.

The ombudsman has made similar rulings against Nationwide, Halifax, Cheltenham & Gloucester and HSBC.

Abbey spokeswoman Christina Mills says: “Ultimately, this whole thing is not great for the customer. It reduces choice in the market and, taken to the nth degree, everyone could end up with the one product. This is a retrograde step.”

Broker club Mortgage Intelligence managing director Sally Laker says: “I think that all the lenders in this situation, not just Abbey, did not make their policy abundantly clear to people. I think they will all have to do the right thing like Nationwide and make a payout to clear the record.”

Recommended

Women losing out on pensions, say LibDems

At least 4.5m women have no basic state pension rights despite having paid £8bn in National Insurance contributions according to Liberal Democrat work and pensions spokesman Steve Webb. He is calling on the Government to launch an immediate inquiry into this “misselling” of pensions and allow women to buy-back the NI contributions they did not […]

Grey area as Royal London names protection company

IFAs have questioned Royal London&#39s decision to brand its long-awaited protection business Bright Grey, saying that consumers will not make the connection between the name and the protection market. The life office says the name will set the new business apart from competitors and strike a chord with consumers for offering something different. But IFAs […]

Life with L&G

A client of mine wants to invest £35,000 in a low-risk portfolio for income and growth – £7,000 of this will go into a fixed-interest Isa, with the balance into a mix of with-profits and distribution. Who to use? Best to try to use just one investment bond for the with-profits and distribution to get […]

Chartwell axes Cockerill and admin staff in &#39tough market&#39

IFA Chartwell Investment Management has axed several of its staff – including high-profile head of discretionary administration Tim Cockerill – in a cost-cutting exercise. Cockerill and four other staff were told last week that their jobs were to go, with the IFA struggling in the present market conditions. The remaining staff will collectively assume the […]

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com