Mortgage holders sue TSB over interest rates
TSB is facing legal action
TSB Bank is facing a legal action worth up to £800 million brought by customers who claim they were locked into mortgages with ‘excessively high’ interest rates.
Six years since Edinburgh-based TSB bought a £3.3bn book of mortgages from Northern Rock, about 200 homeowners whose policies have been administered by TSB’s ‘Whistletree’ brand have issued claims for around £50,000 each in what they claim is overpaid interest.
Harcus Parker, a law firm of specialist group action solicitors which is bringing the case in the High Court, said that up to 27,000 individuals could join the Whistletree claims litigation.
Following the 2008 financial crash Northern Rock had all its assets taken into public ownership and thousands of customers became mortgage ‘prisoners’.
In 2016 TSB Bank purchased a portfolio of former Northern Rock mortgages from the government.
However, over the homeowners pursuing the action claim they were charged almost double the rates offered to other TSB Bank customers and, until recently, TSB refused to allow Whistletree customers to access standard TSB fixed-rate deals on the same basis as its other customers.
A spokesperson at TSB Bank said: “TSB is aware of potential action proposed by Harcus Parker and will robustly defend its position.”