Around 2,500 former Northern Rock customers are set to confront TSB in court, claiming they became “mortgage prisoners” after the UK lender’s collapse. These customers allege that they were trapped into paying significantly higher than market interest rates after their loans were transferred to TSB following Northern Rock’s nationalisation during the financial crisis. The High Court in London is scheduled to hear their case on Tuesday, where they will argue that they were exploited by the high street bank.

The term “mortgage prisoners” refers to borrowers who are unable to switch to a better mortgage deal due to changes in lending criteria, despite being up-to-date with their payments. The plaintiffs in this case argue that they were unfairly penalized and financially disadvantaged by the terms imposed after their loans were transferred from Northern Rock.

The situation arose from the broader fallout of the financial crisis, during which Northern Rock, one of the first UK banks to suffer a bank run in over 150 years, was nationalised. Many of its loans were subsequently sold to other lenders, including TSB, under terms that critics argue were unfavorable to the borrowers involved.

This legal battle highlights the ongoing issues and financial struggles faced by many who were caught up in the aftermath of the financial crisis, and it raises important questions about the responsibilities and ethical obligations of banks towards their customers.

For further details, you can read more on the [Financial Times and BBC News.