A CROSS-FLATTS-based financial group is to appeal against a High Court decision that it should compensate 41,000 former Northern Rock customers.

Northern Rock Asset Management, part of state-owned UK Asset Resolution which manages the mortgage books of the former Northern Rock and Bradford & Bingley banks, said it would appeal.

In December the High Court ruled that customers who took out unsecured loans above a regulated level of £25,000 are entitled to equal treatment to those who borrowed amounts under the cap.

The decision could see an average of £6,300 knocked off outstanding loans and could prompt other banks and the regulator to double-check whether other past loans were incorrectly worded.

The court ruled that the borrowers are contractually entitled to the same rights.

Richard Banks, UKAR chief executive, said: “It is important to remember that our customers have suffered no financial detriment. Following legal advice, we are seeking leave to appeal the court’s decision.”