It also reassured borrower it had set aside £270m to compensate customers who received incorrect paperwork. The same errors were then found in the statements of approximately 1,000 of Virgin customers.
The lender has contacted all the affected borrowers and refunded the interest paid on these loans. Virgin Money added that they discussed the situation with NRAM and are looking to have the cost of refunds of interest met by NRAM. This reflects the intention of all parties that CCA regulated mortgage loans were to be held by NRAM, not Northern Rock plc at the point of its acquisition by Virgin Money.
Its results statement commented:
"A number of Virgin Money mortgage customers were found to have CCA elements in their mortgage loans and, due to the same non-compliance error identified by NRAM, those customers have been sent documentation that does not fully comply with the CCA.
"Virgin Money has taken steps to ensure that all relevant customer documentation now contains the full wording required by the CCA."
