Thousands of Halifax customers could be able to claim compensation after the bank forgot to tell them that it was raising the price of its most expensive account, an omission that broke regulatory rules.

The company has written to a "low single-digit percentage" of the million customers who hold its Ultimate Reward account, apologising because it did not tell them about the price rise more than a year ago. The price of the account rose from £12.50 to £15 a month, while terms and conditions on the insurance that came with the account also changed. One of the most valuable perks of the account – iPhone insurance – had the excess paid by the customer pushed up from £30 to £100. Halifax, which is part of the Lloyds Banking Group, said it was required by the regulator to give two months' notice of price and terms and conditions changes on the account. It said it had "recently identified" that some customers did not receive a letter over a year ago telling them about changes to the product. "We do apologise that they did not receive prior notice of the change," a spokesman said.

The spokesman added that the bank had "sought advice" over whether compensation would be due to the customers affected. "We are just writing to inform them of the changes at this point," she added. Packaged accounts, such as Ultimate Reward, can cost up to £300 a year. They have been widely sold in recent years, and offer a range of additional perks, including travel insurance, breakdown cover and mobile phone insurance....Read more here: Halifax customers eye compensation payments - Telegraph