'Mortgage prisoner' action group sue lenders

When the government took steps to prevent the wholesale collapse of banks like Northern Rock or Bradford & Bingley, their customers were caught up in the austere measures put in place to bring the books back into the black. Many of us will recall the news images of the queues outside the banks as information started trickling through to customers that their bank was about to go belly up. After nationalisation, customers complained about the severe measures being taken to recover mortgage arrears and others believed they were subject to unfair mortgage rates. One customer claims to have overpaid by around £32,000 as he was forced to pay standard variable rates when other banks were offering much more competitive deals. With the situation causing financial hardship and distress to many customers and some having lost their homes to repossession action, the UK Mortgage Prisoner Action Group is bringing legal action against the banks to claim back the extra interest. See the full story here and read more about the nationalisation of the banks here.