Tesco pays out £43m to customers for 'technical breach'

2nd Nov 2014 11:32

Tesco has revealed that its online bank will pay a total of £43m in compensation to customers after breaching industry regulations with loan errors and statement delays.Online Tesco Bank has apologised to 175,000 of its loan and credit card clients and said it will hand back interest and charges owed for the period in which delays occurred. The average pay-out per person will be £228 and it is thought that the supermarket will have to pay out a total of £43m. The regulation errors date back to 2008.A Tesco spokesman told the Mirror: "We have put in place a redress programme to return interest and charges to customers who did not receive documentation in line with the requirements of the Consumer Credit Act."This is the latest in a line of unfortunate incidents the retailer has been involved in.Last week it was revealed that the Serious Fraud Office will launch an investigation into the company's over-stated profit margin.Tesco has labelled this error a "technical breach".One customer also told the Mirror: "It's nice to receive an unexpected cheque, but I hope it is an act of good faith and not an attempt to hide a wider problem."I'd paid this loan off and had forgotten about it until the letter and cheque arrived."