Money

TSB pays £99.9million back to over 200,000 mortgage, overdraft, credit card and loan customers after huge fail --[Reported by Umva mag]

TSB has paid nearly £100 million in compensation to customers in debt who were unfairly treated. The financial watchdog has since fined the bank £10.9 millions for these failures. AlamyThe watchdog described the bank’s systems and controls as “woeful”[/caption] The Financial Conduct Authority (FCA) said TSB “didn’t have the right systems to ensure fair treatment” for those who needed extra support paying off their mortgage, overdraft, credit card and loan debt. Between June 2014 and March 2020, TSB‘s poor processes put thousands of customers with debts on repayment plans they couldn’t afford. TSB has since paid £99.9million in redress to the 232,849 mortgage, overdraft, credit card and loan customers affected. The FCA claims staff were possibly encouraged to focus on the number of repayment plans rather than properly assessing each customer’s situation. This risked increased uncertainty and stress, including for vulnerable customers. It also breached the FCA’s rules set out in its Principles for Business, which state that “a firm must pay due regard to the interests of its customers and treat them fairly.” An independent review into TSB’s treatment of customers who had fallen into debt, ordered by the FCA in July 2020, identified the extent of the failings. 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 would have been fined £15.6million, but it agreed to resolve the issues identified by the FCA, which meant the fine was cut by 30%. While TSB has How to get free debt help There are several groups which can help you with your problem debts for free. Citizens Advice – 0800 144 8848 (England) / 0800 702 2020 (Wales) StepChange – 0800138 1111 National Debtline – 0808 808 4000 Debt Advice Foundation – 0800 043 4050 You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK. Speak to one of these organisations – don’t be tempted to use a claims management firm. They say they can write off lots of your debt in return for a large upfront fee. But there are other options where you don’t need to pay.

Oct 10, 2024 - 09:18

TSB pays £99.9million back to over 200,000 mortgage, overdraft, credit card and loan customers after huge fail --[Reported by Umva mag]

TSB has paid nearly £100 million in compensation to customers in debt who were unfairly treated.

The financial watchdog has since fined the bank £10.9 millions for these failures.

The watchdog described the bank’s systems and controls as “woeful”[/caption]

The Financial Conduct Authority (FCA) said TSB “didn’t have the right systems to ensure fair treatment” for those who needed extra support paying off their mortgage, overdraft, credit card and loan debt.

Between June 2014 and March 2020, TSB‘s poor processes put thousands of customers with debts on repayment plans they couldn’t afford.

TSB has since paid £99.9million in redress to the 232,849 mortgage, overdraft, credit card and loan customers affected.

The FCA claims staff were possibly encouraged to focus on the number of repayment plans rather than properly assessing each customer’s situation.

This risked increased uncertainty and stress, including for vulnerable customers.

It also breached the FCA’s rules set out in its Principles for Business, which state that “a firm must pay due regard to the interests of its customers and treat them fairly.”

An independent review into TSB’s treatment of customers who had fallen into debt, ordered by the FCA in July 2020, identified the extent of the failings.

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 would have been fined £15.6million, but it agreed to resolve the issues identified by the FCA, which meant the fine was cut by 30%.

While TSB has

How to get free debt help

There are several groups which can help you with your problem debts for free.

Citizens Advice – 0800 144 8848 (England) / 0800 702 2020 (Wales)
StepChange – 0800138 1111
National Debtline – 0808 808 4000
Debt Advice Foundation – 0800 043 4050

You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.

Speak to one of these organisations – don’t be tempted to use a claims management firm.

They say they can write off lots of your debt in return for a large upfront fee.

But there are other options where you don’t need to pay.

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