Barclays had incorrectly charged customers interest on personal loans after making errors in statements and letters to clients, the UK’s second-largest bank by assets said yesterday.
The bank might have to pay as much as £100 million (R1.56 billion) to 300 000 customers to remedy the mistakes, which date back as far as 2008, according to a person with knowledge of the matter, who asked not to be identified.
The London-based lender, which is the majority owner of Absa in South Africa, said: “Due to these notification errors, interest was not due on certain accounts during the period that Barclays made this mistake, and while no one has been mis-sold to, customers are entitled to have their interest payments returned. Barclays is undertaking a review of all its businesses where similar issues could arise.”
Meanwhile, an ethical scorecard showed Barclays was the worst bank in Britain for honesty and customer service, The Independent reported.
The bank picked up just four out of 100 points in campaign group Move Your Money’s ratings, with the five biggest banks among the poorest performers in the 70 that were assessed. Other giants Royal Bank of Scotland, HSBC and Lloyds also received fewer than 25 points.
A Barclays spokesperson said the bank was “disappointed”.