Feeds

Did a date calculation bug just cost hard-up Co-op Bank £110m?

And just when Brit banking org needs £400m to stay afloat

Security for virtualized datacentres

A programming blunder appears to have landed the cash-strapped Co-op Bank an unexpected bill for £110m.

In its financial report [PDF] for 2013, which last week revealed a £1.3bn loss, the bank said it had to stump up nine-figure "costs relating to breaches of the Consumer Credit Act".

Specifically, the scandal-hit bank noted: "Interest refunds relating to technical compliance with the Consumer Credit Act have also been provided for (£110m)."

The bank did not explain exactly how it fell foul of the law, but with a little digging, we uncovered this Grocer report from March: it claims that loan statements to a group of customers were sent out late – specifically, 368 days after the previous annual statements rather than the 365 days specified by the Consumer Credit Act.

That gaffe meant the bank had to pay back all the interest on that batch of loans as a result of not following the letter of the law.

The three-day delay in sending out the statements was allegedly the fault of a software developer who got his or her sums wrong, according to the Grocer. The bank did not comment when asked by The Reg to confirm whether or not a coding error had led to the cock-up.

Following the publication of its full-year report, it's feared the Co-op Bank could go bust within months if it does not raise £400m to shore up its finances. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.