TSB fined £11million after failing to treat struggling customers fairly
10/10/2024 04:50 AM
TSB has been fined for failing to ensure customers who were in debt were treated fairly.
The financial watchdog has issued the bank with a £10,910,500 penalty for its failures.
The Financial Conduct Authority (FCA) said that the bank “lacked suitable systems and controls to secure fair outcomes”.
It stated that between June 2014 and March 2020, TSB’s “inadequate processes” created a real risk that repayment plans were for customers in arrears were unaffordable.
The FCA claims that staff were potentially encouraged to prioritise the number of repayment plans made over taking enough time to assess individual customer circumstances.
Therese Chambers, joint executive director of enforcement and market oversight, said: “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 paid £99.9million in redress to the 232,849 mortgage, overdraft, credit card and loan customers affected.
