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.
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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.”