FSA fines mortgage lender £1m
LONDON - UK regulator the Financial Services Authority (FSA) has fined mortgage lender GE Money Home Lending £1.12 million for exposing customers to losses due to mismanagement and a lack of business controls and monitoring systems. The FSA's action marks another enforcement of its increasingly tough Treating Customers Fairly (TCF) regime.
GE Money allowed 684 borrowers with regulated mortgage contracts to accrue financial losses of more than £2.3 million before redressing the losses.
The FSA said the failings were especially grave because the customers included those with poor credit ratings. Furthermore, although the firm had recognised the failings in 2004, it took two years before corrective action was taken.
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