Saturday 18 September 2021

Rabobank to compensate customers who paid too much interest

Photo: Rabobank

Rabobank is working on a settlement for thousands of private customers who paid too much interest on their loans, the cooperative bank said on Tuesday.

The decision follows several rulings by the financial services complaints authority Kifid focusing on the high interest rates applied to loans and overdrafts. In short, Kifid ruled that banks should recalculate the floating rate and repay the difference to their customers.

Rabobank says approximately 15% of customers who had loans or overdraft facilities were subjected to a variable interest rate that ‘did not always closely follow the market interest rate’.

The bank hopes to let those affected know more about the compensation package by the end of the year.

The bank did not give financial details but a spokesman told broadcaster NOS that most compensation deals would amount to between €100 and €200. Some 150,000 customers are affected, the spokesman said.

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