Clydesdale fined over mortgage mistakes

The UK Financial Conduct Authority has fined Clydesdale Bank for failing to inform its customers clearly of their rights after the bank miscalculated the repayments on more than 42,000 mortgages.

Clydesdale, a subsidiary of National Australia Bank, will compensate all those who underpaid on their mortgages as a result and write to other affected customers, the FCA said.

The FCA said in April 2009 Clydesdale discovered an error in how it had calculated mortgage repayments for customers with variable rate mortgages. As a result of the error, incorrect repayments were made on 42,500 customer accounts.

Of these, approximately 22,000 accounts were left with shortfalls because customers made repayments that were insufficient to repay their mortgages by the end of the agreed terms. The bank corrected the error in 2010.

NAB has had to deal with a string of what it labeled "conduct and redress" issues at Clydesdale.

In another action supervised by the Financial Conduct Authority, more than 20,000 customers can expect compensation AXA Wealth Services over the mis-selling of investment products through the bank.