Car finance company Moneybarn has been fined £2.77m for not helping customers who fell into debt difficulties.

It has handed £30m to 6,000 customers hit by its actions, described by the City watchdog as “serious breaches”.

“Moneybarn did not give its customers the chance to clear their arrears over a realistic and sustainable period,” said the Financial Conduct Authority.

“All customers potentially affected by these findings have been fully compensated,” the company said.

The fine relates to customers who fell behind with loan repayments while in financial difficulties, between 1 April 2014 and 4 October 2017.

Vulnerable borrowers

Moneybarn targets people who face difficulty getting car loans from mainstream lenders because of their personal circumstances.

Such customers are at an increased risk of financial vulnerability as they often