A summary of the final notice from the Financial Conduct Authority (FCA) regarding TSB Bank's handling of customers in financial difficulty, particularly between June 2014 and March 2020.
The FCA found that TSB breached key principles concerning vulnerable customers, especially those struggling with mortgage payments, overdrafts, credit cards, and loans.
Key findings included:
TSB failed to appropriately manage arrears and customers in financial difficulty, affecting 232,849 customers and leading to £99.9 million in redress.
A Skilled Person’s review revealed that 55% of the cases involved unfair outcomes, such as incorrect charges and poor customer assessments.
Root causes of these failures included flawed policies, insufficient staff training, and poor governance. Automated systems often malfunctioned, resulting in duplicate charges and other errors.
Vulnerable customers were especially impacted, as TSB's policies did not consistently identify or address their needs. There were fai...
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