TSB Banking Group (LSE:TSB) has been fined £10.9 million fine over its treatment of customers in arrears.
“Inadequate processes” in place between 2014 and 2020 meant there was a “real risk” that repayment plans were not realistic, the Financial Conduct Authority said on Thursday.
This included inadequate training for staff over dealing with customers’ circumstances, while incentives potentially encouraged plans to be made at pace.
The FCA said TSB risked agreeing to unaffordable repayment arrangements with customer as a result.
“If you get into difficulty, you hope for - and we expect - fair treatment so a stressful situation isn’t made worse,” FCA join enforcement executive Therese Chambers said.
“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.”
TSB has paid £99.9 million to some 232,849 mortgage, overdraft, credit card and loan customers affected since a review by the regulator in 2020, the FCA added.