Stop charging the incorrect rate of interest on the customer’s account
Ensure any further customer overcharging is stopped as early as possible
Communicate to the customer.
Lenders must then carry out a full review of the impacted customer’s mortgage account. Once this is complete, lenders must issue a detailed letter to the customer explaining:
The exact nature of the error
The correct rate to apply to the customer’s account
Information on the next steps of the examination, including the redress and compensation process where applicable.
A redress amount to cover the amount overpaid while on the incorrect rate, a refund of charges applied to your mortgage account, and interest to compensate for you not having access to the money you overpaid on your mortgage.
A compensation amount to compensate for the bank’s failure to charge the correct rate and the impact that this had on you
A payment amount of €615 to cover your cost of obtaining independent professional advice that you may wish to seek on this matter.