Lloyds Banking Group has a provision of £500 million to deal with a mortgage customer review and contact programme, following agreement with the FSA.

It follows outstanding concerns with the variation of limits of some retail mortgage contracts.

It specifically relates to some Halifax mortgage customers, where the wording in the mortgage offer documents received by these customers had the potential to cause confusion.

The relevant mortgages were written during 2004 – 2007 by Bank of Scotland plc under the ‘Halifax’ brand, and through the contact programme, goodwill payments will be made to affected customers. To effect these goodwill payments, Bank of Scotland plc has applied for a Voluntary Variation of Permission (VVOP) to carry out the customer review and contact programme to bring it within section 404F (7) of FSMA 2000.