By James Kirkup
12:54PM GMT 11 Dec 2012
George Osborne, the Chancellor, told MPs that due to administrative errors made in 2008, loan agreements for around 152,000 Northern Rock borrowers are not wholly valid.As a result, many customers could be in line for repayments of interest. The error will cost Northern Rock, which was state-owed at the time, an estimated £270 million or an average of £1,776 per borrower.
Most of the customers concerned borrowed less than £25,000, Mr Osborne told MPs. Those affected will be receiving letters from Northern Rock shortly, he said.
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