Customers of Yorkshire and Chelsea building societies to receive refunds of arrears charges in £8.4m windfall

About 34,000 mortgage borrowers with Yorkshire Building Society are to receive refunds averaging almost £250 each after mistakes were made in the calculation of mortgage arrears charges.In all, about £8.4m will be paid to the customers affected, some of whom have mortgages with Chelsea and Barnsley building societies and Accord Mortgages, which are all part of the Yorkshire group. Borrowers will receive an average of £247.The group is to refund all mortgage arrears administration fees charged since January 2009 and interest on those fees, even to customers who were not affected by the mistakes in calculation.The problem came to light when the City regulator, the Financial Conduct Authority, questioned whether Yorkshire's procedures were robust enough.The society then reviewed its treatment of some customers who had been charged arrears administration fees......Read more here