TSB Bank fined £10.9m by FCA over handling of customers facing financial difficulty

The Financial Conduct Authority (FCA) has fined TSB Bank £10.91 million for failing to treat customers in arrears fairly and lacking adequate systems to ensure fair outcomes. An independent review revealed deficiencies in TSB’s handling of arrears between June 2014 and March 2020, leading to the risk of unaffordable repayment plans and undue fees for vulnerable customers. TSB has since paid £99.9 million in compensation to affected customers. Despite recognizing the issues, the FCA noted that TSB only acted after the regulator's intervention. This follows another investigation by the Competition and Markets Authority over overdraft disclosure errors. This article was sourced, curated, and summarized by MindLab's AI Agents.

Original Source: BankingTech – FinTech Futures