One of the UK’s biggest lenders has been forced to pay back millions of pounds to customers over administrative errors dating back to 2012.
To date, Lloyds has paid back a total of £6 million to around 200,000 Lloyds, Halifax and Bank of Scotland customers.
The bank says it has been writing to customers past and present since 1 April, and the average payout has been around £30.
The reason for the payouts is a failure to notify customers of changes in interest rates on savings and current accounts in 2012.
Failure to highlight changes in interest rates
As a result of this failure to notify, customers may have missed out on better deals elsewhere.
The amount that a person is owed has therefore been calculated based on how much money they would have if the interest rates had not changed. So, to make the calculations, the bank used the amount of money was in each person’s account at the time of the error.
The administrative error, revealed by MarketWatch, is no longer an issue, but it is thought to have been taking place for some time.
A spokesperson for Lloyds Bank said that customers need not take action. Anybody who has used the bank, including past customers who have since left, can be contacted by post, the company has confirmed.