Two brothers held joint accounts with their respective wives at the same financial institution in different towns. The circumstances of their loans were similar as far as security and other items were concerned.

In casual conversation, the brothers discovered that one of them was being charged an interest rate 1 per cent higher than the other.

When the brother with the higher charge contacted the branch concerned, he was told he had a 1 per cent loading on the account and that he had been notified and agreed to this when the loan was taken out.

Following a complaint, the ombudsman discovered that this was not, in fact, the case and that the institution's own internal documentation showed the rate quoted had no reference to loading.

The ombudsman found in favour of the complainants because they were not properly notified of the loading.

They were awarded £1,325 to compensate for the overcharging and to provide a refund of the loaded amount.