Barclays announces refunds for 300,000 borrowers

<p>Hundreds of thousands of Barclays borrowers are to get refunds.</p>

Barclays has confirmed it is set to give out refunds to hundreds of thousands of people who have borrowed from the bank.

It explained that due to mistakes on paperwork, 300,000 personal loan borrowers are to be refunded by the bank, with the error dating back to October 2008.

In a statement, Barclays said: "whilst no-one has been mis-sold to, customers are entitled to have their interest payments returned". It added: "No customer will pay more than they were ever contractually expected to."

The share price of Barclays has fallen this morning (September 17th) on the back of the news it will refund 300,000 of its personal loan customers.

At 09:46 BST, its stocks were selling for two per cent lower than at the opening of the London Stock Exchange at the start of the day.

Barclays is one of the biggest banks in the UK, but was badly affected by the recession and its after-effects that continue to blight the country's economic recovery.

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