Customer contact & remediation programme

What you need to know

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, across Lloyds Banking Group, 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.

 

Contact programme FAQs

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

  • Arrears fees cover the cost to us for a proportion of the additional work we did for customers in arrears e.g. when we dealt with your mortgage account if it was in arrears and tried to make contact with you.

  • If you struggle to make mortgage payments and fall behind, a payment plan can be agreed to help support you. 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, across Lloyds Banking Group, who had fallen behind on their mortgage payments, some of whom may have been inappropriately charged.

  • We have taken significant steps to address this situation and prevent it happening again, including ensuring consistency of in-depth affordability assessments, colleague training, strengthening the way we run the business and reviewing fee charging.

How fee refunds work

Mortgages included in the review

Other questions

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