- TSB Bank was fined £10,910,500 by the Financial Conduct Authority (FCA) for failing to treat customers in arrears fairly and for lacking appropriate systems and controls.
- The fine was reduced by 30% after TSB agreed to settle with the FCA.
- An independent review commissioned in July 2020 found that between June 2014 and March 2020, TSB’s staff training did not adequately support understanding customers’ circumstances.
- Some staff were influenced by incentive schemes that prioritized the number of repayment plans over proper customer assessments, potentially leading to unaffordable payment arrangements and inappropriate fees.
- 232,849 customers with credit cards, loans, mortgages, and overdrafts were affected, and TSB has paid £99.9 million in redress to these customers.
- Therese Chambers, FCA’s joint executive director of enforcement, criticized TSB’s weak systems and controls and noted that the bank only took effective action after the FCA’s review.
- In July, the Competition and Markets Authority (CMA) also found that TSB incorrectly disclosed the monthly maximum charge (MMC) for unarranged overdrafts between February 2021 and January 2024.
