Authorities in the UK have said that about seventeen banks and building societies will pay about £149 million of interest and charges to customers with credit deals from the institutions.

The country's regulator, the Office of Fair Trading noted that the financial institutions did not offer enough legal information relating to the credit deals offered by them in the country. The repayment form the institutions will benefit some 497,000 customers who used ore cards, credit cards, loans and hire purchase agreements.

Under the Consumer Credit Act, the institution lending the amount cannot recover interest or default charges during the period in which it has failed to comply with statutory requirements. Customers will be contacted directly by their bank or building society if they were affected by the non-compliance. The interest and charges were paid on products such as store cards, credit cards, loans and hire purchase agreements.

Officials have said that half a million credit card holders and other borrowers will benefit from the move from the regulators. The move will also ensure that the financial institutions comply with the rules and offer clear information to the customers accepting credit deals from the institutions.