Halifax mortgagors to receive £500m in goodwill payments
by Gill Montia
Lloyds Banking Group has reached a voluntary agreement with the Financial Services Authority regarding a customer contact programme for certain of its Halifax mortgage customers.
The bank will be writing to borrowers who received a Halifax mortgage offer between 20th September 2004 and 16th September 2007, and still held that mortgage in January 2009.
According to Lloyds, wording in mortgage offers sent out during the period had the potential to cause confusion with regard to the lender’s standard variable rate cap.
Letters will be going out to approximately 600,000 customers from April, and the group expects to make goodwill payments to approximately 300,000 homeowners.
In this respect, Lloyds is making a provision of £500 million in its 2010 accounts.
Customers who believe they may form part of the contact programme are advised that they do not need to take any action at this stage.