Yorkshire Building Society set to spend millions refunding fees
ADMINISTRATION fees for mortgage arrears paid by Yorkshire Building Society (YBS) customers in the past four years are set to be refunded.
The Financial Conduct Authority (FCA) announced yesterday that the building society will voluntarily pay back the fees and any interest paid, after an FCA suggestion that some had been charged incorrectly. Customers will receive the payments whether their fees were paid in error or not.
According to the watchdog, the bill may reach up to £8.4m for YBS, as 33,900 people who are using or who have used the building society take an average payment of £247.
“We have been encouraged that they are now putting customers first by paying redress to everybody in arrears, not just those who were overcharged,” said FCA director of supervision Clive Adamson.
He added: “This is nonetheless a very important reminder that firms must take responsibility for any wrongdoing and make sure their customers get a fair deal.”
YBS say they will begin to send letters out to customers before the end of the month. The building society added: “We always work in our customers’ interests and maintaining their trust is fundamental to us. We hope our actions in dealing with this issue reflect our commitment to doing the right thing for our customers.”