The Council of Mortgage Lenders has welcomed the Financial Conduct Authority move to consult on mortgage arrears remediation guidance and says it is “committed” to working with the regulator on the issue.
The trade body says its members will take the initiative and contact any affected customers to pay compensation.
The CML says it would respond fully ahead of the January consultation deadline.
CML director general Paul Smee says: “Those lenders who used the arrears calculation methodology now identified as problematic did so in good faith, believing that they complied with the rules and were acting in customer interests.
“They are fully committed to delivering fair outcomes for all customers, past and present.
“Customers do not need to do anything. Once lenders have digested the regulator’s consultation and determined the most appropriate way to undertake the expected remediation, they will be in touch directly with affected customers.”