The Mortgage Works (UK) Limited (TMW) is a wholly-owned subsidiary of Nationwide Building Society, offering buy-to-let mortgages and related products Recently, TMW announced that it would refund thousands of its customers after a systems error overcharged them.
The issue came to light when the financial regulator, the Financial Conduct Authority (FCA), conducted a review of TMW’s processes The FCA found that between 2011 and 2018, TMW systems had applied incorrect interest rates on some of its tracker mortgages As a result, TMW had overcharged approximately 82,000 of its customers by a total of £7.7 million.
TMW has apologized for the error and is in the process of refunding affected customers Here’s what you need to know about the TMW refunds:
Who is eligible for a refund?
If you have a TMW tracker mortgage that started before April 2014 and you have paid at least one payment at the incorrect interest rate, you may be eligible for a refund TMW has identified affected customers and will be contacting them directly to explain how the refund will work.
How much will the refund be?
The refund will consist of the amount of interest overcharged, plus interest at 8% per annum, from the date of the overcharge to the date of the refund The amount of the refund will depend on how long you have been affected by the overcharge and the amount of your mortgage.
When will the refund be paid?
TMW is working to process refunds as quickly as possible However, the refund process may take several months to complete due to the number of customers affected If you are due a refund, TMW will contact you with more information.
Do I need to do anything to claim a refund?
No If you are eligible for a refund, TMW will contact you directly with more information You do not need to take any action at this stage.
How will the refund be paid?
Refunds will be paid directly to the account from which the overcharged payments were made The Mortgage Works (uk) refunds. If you have closed the account, TMW will contact you to arrange an alternate payment method.
What should I do if I haven’t heard from TMW?
If you think you may be eligible for a refund but haven’t heard from TMW, you can contact them directly to enquire TMW has set up a dedicated phone line for customers to call: 0800 056 6828 You can also contact TMW via their website or by email.
What can I do if I’m not happy with the refund offered?
If you are not happy with the refund offered by TMW, you can contact the Financial Ombudsman Service (FOS) for advice The FOS is an independent organization that helps resolve disputes between consumers and financial services companies If you are still not satisfied with the FOS’s decision, you may be able to take legal action.
What can we learn from the TMW refunds?
The TMW refunds highlight the importance of financial companies having robust systems and processes in place The FCA’s review of TMW’s processes shows that even large, well-respected financial institutions can make mistakes It is therefore important for consumers to read the terms and conditions of financial products carefully and to raise any concerns with the provider if they have any doubts.
The TMW refunds also serve as a reminder that if you are overcharged by a financial institution, you have the right to a refund, plus interest The Financial Services Compensation Scheme (FSCS) can also provide compensation if a financial institution goes out of business.
In conclusion, the TMW refunds show that even large, well-respected financial institutions can make mistakes If you think you may be eligible for a refund, TMW will contact you directly with more information If you have any further concerns, you should contact TMW or the FOS for advice.