Monday, December 9, 2024
spot_img
spot_img
HomeNewsGlobal NewsFCA fines TSB £10.9M over treatment of customers in financial difficulty

FCA fines TSB £10.9M over treatment of customers in financial difficulty

LONDON, England – The Financial Conduct Authority (FCA) has fined TSB Bank plc (TSB) £10,910,500 for failing to ensure customers who were in arrears were treated fairly.

It also lacked suitable systems and controls to secure fair outcomes. TSB has paid £99.9M in redress to the 232,849 mortgage, overdraft, credit card and loan customers affected.

Between June 2014 and March 2020, TSB’s inadequate processes created a real risk that repayment plans were not realistic. Its training did not fully support its staff in understanding customers’ circumstances. Staff were potentially encouraged by incentive schemes to prioritise the number of plans made overtaking enough time to assess individual customer circumstances.

As a result of its failings, TSB risked agreeing unaffordable payment arrangements with customers in difficulty or charging them inappropriate fees. This risked increased uncertainty and stress, including for vulnerable customers.

The extent of the failings were identified by an independent review into TSB’s treatment of customers who had fallen into arrears, which had been ordered by the FCA in July 2020.

TSB had become aware of potential problems with its collections and recoveries in December 2016. However, it was not until the review in 2020 that TSB took effective action to fully address them.

Therese Chambers, joint executive director of enforcement and market oversight, commented:

“If you get into difficulty, you hope for – and we expect – fair treatment so a stressful situation isn’t made worse. TSB’s woeful systems and controls exposed its customers to risk of harm and meant it missed opportunity after opportunity to do the right thing. While it did take action, it took us instigating a review before it acted effectively to address all the issues.”

TSB has worked closely with the independent reviewer and the FCA and has concluded a comprehensive programme to resolve these issues, costing £105M. The FCA continues to supervise all firms to ensure that they have suitable processes in place to support struggling customers.

spot_img
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img
spot_img

Caribbean News

St Kitts – Nevis to allow ‘underpaid CIP citizens’ to make the wrong right – just pay the difference

 TORONTO, Canada – St Kitts and Nevis Prime Minister Terrance Drew is doing the right thing, in the fight against Caribbean CIP/CBI “illegal discounting”...

Global News

Stability in the Middle East vital to delivery at home, says PM Starmer

UK to increase engagement in the Middle East, as Prime Minister announces new funding for Syria and agrees step change with Saudi Arabia...