Lloyds Banking Group PLC (LON:LLOY) has been hit with a £64mln fine for the way it and subsidiaries Bank of Scotland and The Mortgage Business dealt with customers falling behind on mortgage payments.
Mark Steward, Executive Director of Enforcement and Market Oversight at UK financial regulator the FCA said: ‘Banks are required to treat customers fairly, even when those customers are in financial difficulties or are having trouble meeting their obligations.
“By not sufficiently understanding their customers’ circumstances the banks risked treating unfairly more than a quarter of a million customers in mortgage arrears, over several years.
“In some cases, customers were treated unfairly, including vulnerable customers.”
Between 2011 and 2015, Lloyds, Bank of Scotland and the Mortgage Business failed to recognise customers’ circumstances and left inexperienced staff to negotiate appropriate payment arrangements for customers in arrears, the FCA said.
Lloyds did not dispute the FCA findings, which meant the fine was reduced by 30% from the original £91.5mln.
The bank estimates it has will have paid £300mln in compensation to 526,000 customers once a redress scheme completes shortly.
Published at Thu, 11 Jun 2020 11:46:00 +0000-Lloyds Banking receives £64mln fine for mortgage failings