Lloyds Fined lb94 Million for “Unfair” Mortgage Treatment

On Thursday, the Financial Conduct Authority issued an excellent of lb64,046,800 to Lloyds Banking Group for failing to deliver fair management of mortgage customers.

The FCA said that Lloyds Bank, Bank of Scotland and The Mortgage Business did not obtain enough information to correctly assess mortgage customers in payment difficulties or arrears, potentially delivering unfair treatment to greater than a quarter of the million customers between 2011 and 2021.

Compounding the issue, cuts through the bank meant that most call handlers coping with customers in mortgage arrears were new to their role and not able to consult more knowledgeable staff.

Mark Steward, the FCA's executive director of enforcement and market oversight, said in a statement: “Banks have to treat customers fairly, even when those customers are in financial difficulties or are having trouble meeting their obligations.”

“Customers should still pay what's owed, but banks are obliged to deal with their customers fairly when making new payment arrangements,” he continued, adding that other firms should “take notice” of the FCA's actions and ensure fair treatment of their very own customers.

A Lloyds Group spokesperson said: “We have contacted all customers who have been affected between 2011 and 2021 to apologise and also have already reimbursed all who have been charged fees at the time. Customers do not need to make any move.“