Mortgage payment arrears have been wrongly handled by UK lenders, which could lead to hundreds of thousands of compensation claims, according to the Financial Conduct Authority (FCA). Arrears have sometimes been added to the capital owed as well as charged for separate payment. This can lead to overpayment, excess fees and damage to a customer’s credit rating. This double billing practice was identified in a court ruling from 2014 against Bank Of Scotland. The FCA has published draft guidance to correct the problem and urged lenders to identify affected customers immediately.

Watchdog warns UK banks over mortgage cases – Irish Examiner