TSB Bank has been fined a significant amount by the Financial Conduct Authority (FCA) due to their inadequate treatment of retail customers facing financial difficulties.
The FCA's investigation found that TSB did not have sufficient controls in place to ensure fair treatment for customers who were behind on their mortgage payments, credit card bills, loans, and overdraft accounts.
From June 2014 to March 2020, TSB's repayment plans for around 232,849 customers were considered unrealistic and potentially unaffordable.
The FCA criticized the fees associated with these plans as inappropriate, highlighting TSB's failure to address the needs of financially distressed clients.