A technical error with the Bank of Scotland’s mortgage
processing systems caused the bank to debit its borrowers’ monthly
mortgage payments up to three times this week.
Some 7,000 borrowers suffered repeated withdrawals that drained
their current accounts until they incurred unauthorised overdraft
fees and had their direct debits refused.
Although Bank of Scotland has pledged to fully reimburse its
customers by the end of today, the HBOS subsidiary has not revealed
what it has done to avoid a repeat of the problem.
Like most mortgage lenders, the bank runs different platforms
for different parts of its customer base.
Bank of Scotland spokesman Ross Keany said, “I can’t go into
details from a technical point of view.”
