FCA fines Yorkshire Building Society £4m for mortgage failings

The Financial Conduct Authority (FCA) has fined Yorkshire Building Society £4,135,600 for failings when dealing with its mortgage customers experiencing payment difficulties.

Between October 2011 and July 2012, call handlers at the bank, dealing with customers in payment difficulties failed to identify promptly the cause of their problems and their future financial prospects.

According to the FCA, these failures led to substantial delays which led to some customers incurring increased fees and associated interest. The bank has started to refund these customers, it said.

The redress scheme is currently underway and approximately 33,900 customers will be repaid a total of £8.4 million.

FCA director of enforcement and financial crime, Tracey McDermott said ‘Customers in financial difficulty need to be treated fairly and sensitively.  Firms must ensure that they are taking into account the particular circumstances affecting customers who find themselves in difficulty.  Firms need to be dealing with these customers proactively, without delays, in order to ensure they are not losing out’.