ABN Amro sorry for mortgage refinancing errors

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ABN Amro is recalculating the fine charged for prematurely repaying mortgages, the bank reported today in response to a Tuesday's broadcast of TV program Radar. Some customers complained that they had to pay a heavy fine to pay off their mortgage or when refinancing their loan.

ABN Amro calculated penalty interest rates using an incorrect method for many of its customers, according to Radar. Only people who explicitly complained to the bank received back the amount overpaid. Those who complained were usually more knowledgeable in financial matters and knew how the fine should be calculated.

They complained that they had to pay hundreds, or sometimes even thousands of euros more than the were supposed to.

For customers who want to take advantage of the current low interest rates and apply for a new mortgage, it is also often unclear how ABN Amro calculated the penalty interest rate. The bank says it is investigating the issue and will compensate customers who were overcharged.

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