Lloyds Bank, Bank of Scotland, and its offshoot The Mortgage Business—all part of the same group—failed to take struggling customers’ financial circumstances into account when arranging repayments between April 2011 and December 2015, according to the FCA. Over 250,000 customers with mortgage arrears may have been adversely impacted.

A sample review of 100 customer files from 2014 to 2015 found there was unfair treatment in 38 percent of them.

The fine—reduced by 30 percent from £91.5 million (U.S. $115 million) due to the banks’ early acceptance—is the third largest handed out by the FCA in the past five years and is one of the largest penalties imposed by the regulator in its eight-year history not related to anti-money laundering failings or exchange rate rigging.


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