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

Choosing a cloud hosting partner with confidence

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
Bada-Bing! Mozilla flips Firefox to YAHOO! for search
Microsoft system will be the default for browser in US until 2020
Google bags OBSCENELY LARGE Times Square ad space for New Year's
Choc Factory pays millions for whacking new digital screen
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.