About £260 million pounds in compensation from the UK government will help former customers of bailed-out bank Northern Rock after they won a UK court appeal due to the incorrect wording of 43,000 past loans. The UK Court of Appeal overturned the decision of the High Court in December on the side of customers who took out unsecured loans of more than £25,000 with incorrect wording on the documents.
NRAM Plc had also made a provision for the compensation and will release the provisions as soon as possible. NRAM brought the legal claim to get a legally binding judgement on consumers who had unsecured loans around £25,000 and £30,000 pounds on top of their mortgages with Northern Rock between 1999 and 2008.
Meanwhile, Northern Rock has no issue regarding payment protection insurance. However, it’s improper wording of unsecured loans have created a huge customer setback that requires immediate attention.
Northern Rock had collapsed shortly after the UK government bailed it out in 2008.