Osborne announces Northern Rock compensation

Some 152,000 Northern Rock Asset Management customers will receive hundreds of pounds each in compensation owing to mistakes made in paperwork.

Customers who took out personal loans of less than £25,000 will receive an average of £1,170 each.

Bank staff failed to include key details on annual statements about loans, including the original amount which had been borrowed.

Chancellor George Osborne was heckled by Labour MPs when he announced the refunds in the House of Commons.