Lloyds bank fined £64 million pounds by watchdog.
One of Britain's biggest banks Lloyds has been fined £64 million pounds ($81 million dollars) by the banking regulator the financial conduct authority (FCA) for mishandling hundreds of thousands of mortgage customers who were facing difficulties.
This is not the first set of bad news which hit the firm Lloyds as other brands within the Lloyds Banking Group as Lloyds, Bank Of Scotland and The Mortgage Businesses units are also in the process of paying redress to 526,000 customers to the tune of 300 million pounds.
The latest fine to be delivered to Lloyds by the watchdog of £64 million pounds is the largest fine to be imposed by the FCA for mortgage related incidents. It has been confirmed that is Lloyds had not agreed to the recommendations from the FCA the fine would have been a whopping £91.5 million pounds.
This fine comes at a time when the entire banking industry is struggling due to Covid-19 as customers are unable to make ends meet resulting in many mortgage customers using the mortgage relief scheme.
Mark Steward, the FCA’s executive director of enforcement and market oversight said, "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.”
The findings from the FCA show that between April 2011 and December 2015 the bank had failed to help customers who would have been defined as vulnerable by the FCA
Lloyd have responded by saying that all customers who have been affected have already been contacted and reimbursed so there is no need for customers to take any further action.
“We have since taken significant steps to enhance how we support mortgage customers experiencing financial difficulty, including investing in colleague training and procedures,” Lloyd said in a statement.
The watchdog warned all lenders that the hardship faced by them during the COVID-19 pandemic “only heightens the importance of firms treating customers in financial difficulty fairly and appropriately”.