Capita and Co-Op Bank resolve differences over mortgage deal
Capita and the Co-operative Bank have resolved their differences over claims that the outsourcing firm withheld payments from the bank due to delays as it helped administer mortgages for Capita’s clients, saving over 700 jobs.
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FTSE 100-listed Capita said on Monday that its Western Mortgage Services business will continue to provide mortgage administration services and process new mortgage applications for the Co-op Bank, while work on the transforming the IT system will cease.
The new contract will run until December 2020 with an option to extend and the resolution between the companies has secured 740 Capita jobs related to the contract in Plymouth, Leek and London.
In November 2016, Capita won a £325m 10-year contract to take over the mortgage staff of Co-op Bank’s administration firm, Western Mortgage Services, in order to comply with regulations.
Capita previously said that the bank had not paid it for its work, which the Co-op denied and said that Capita had not kept its side of the deal.