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TSB is under investigation by city watchdog over how it treated a group of clients who fell behind in loan repayments between 2013 and 2020
TSB is under investigation by the city watchdog over how it treated a group of clients who fell behind in loan repayments between 2013 and 2020.
The Financial Conduct Authority has launched a review of the support offered to clients by the bank’s debt collection arm over the seven-year period.
The review, which is being conducted in conjunction with the TSB, began last year and is continuing. An initial assessment revealed that the conduct of the TSB may have caused loss to some customers.
Under Watch: The Financial Conduct Authority has launched a review of the support offered to clients by the bank’s debt collection arm over the seven-year period
The bank is set to pay millions of pounds in damages and has warned investors that “it is not yet possible” to determine whether it will be fined by the FCA.
TSB has already set aside £ 55million to cover the cost, which it plans to use over the next two to three years.
It is understood that customers are not assured of a payment, but payments are likely to include compensation for interest lost by customers due to incorrect charges.
The FCA fined both Lloyds and Barclays last year for refusing mortgages to late-paying customers.
A TSB spokesperson said: “We are conducting a review of overdue clients to determine if our treatment has not met what they should have expected. The review should continue until in 2022. ‘ The FCA declined to comment.
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