The plea has come in response to the Financial Ombudsman Service’s ruling on C&G’s Dual Variable Rate, which in the instance in question it found to be unfair.
Mick McAteer, senior policy adviser at the CA, said: "The Consumers’ Association welcomes the Ombudsman’s ruling against C&G’s dual mortgage rate. We hope Cheltenham and Gloucester go beyond the narrow ruling and demonstrate its commitment to its customers by following best business practice and proactively compensate all customers.
"Nationwide, one of the few remaining major mutuals, recently set an excellent precedent on this issue by proactively moving all customers onto the improved rate. Now that the bulk of savings and mortgages are in the hands of banks, following the conversion of most of the major building societies, consumers are losing out to banks who seek to satisfy their shareholders. The cost of building society conversions to UK consumers could be in the region of £30 billion over the long-term."
