Representatives of the defunct high street lender lose a legal test case over compensation stemming from loan documents.

Thousands of borrowers are in line to get compensation after London's High Court ruled against former bank Northern Rock. More than 40,000 loan applicants are expected to receive funds after a legal test case questioned the wording in past loan documents. The total payout is expected to be £258m, which will come in part from the British taxpayer as the Government part owns the assets of the failed bank. A total of 41,000 customers will receive £6,300 each, and the ruling is expected to see other lenders check documents for incorrect wording on loans. The High Court ruling released on Wednesday was against Northern Rock Asset Management (NRAM). Northern Rock failed in 2008, with Virgin Money later buying its good assets, and the 'toxic' assets nationalised and taken as part of NRAM. Now part of UK Asset Resolution (UKAR), the assets are in a state-run "zombie bank" that does not take on new business.....Read more here