15th Dec 2020 11:52
(Alliance News) - Barclays PLC has been fined GBP26 million by the UK Financial Conduct Authority over the "poor" treatment of customers in financial difficulty.
The regulatory body fined Barclays Bank UK PLC, Barclays Bank PLC and Clydesdale Financial Services Ltd after finding that between April 2014 to December 2018, some retail and small business customers who had been offered consumer credit were treated poorly when they fell into arrears.
The FCA found that Barclays failed to follow its customers' contact policies for customers who fell into arrears and did not have appropriate conversations with customers to help understand the reasons for the arrears. It added the bank also failed to properly understand customers' circumstances leading it to offer unaffordable, or unsustainable, forbearance solutions.
It noted that while some of the problems were identifies as early as 2014, they were not rectified due to systems and controls failings.
However, adequate measures to resolve the problems were subsequently taken, with Barclays paying over GBP273 million to at least 1.5 million customer accounts as part of a redress programme which commenced in 2017.
"Consumers should feel reassured that their lender will work with them to help resolve any financial difficulties, whereas Barclays's poor treatment of its customers risked making these difficulties worse. Firms must treat consumer credit customers fairly, including when they find themselves in arrears. We will take action against unfair treatment, or where firm systems expose customers to the risk of unfairness," said Mark Steward, FCA executive director of enforcement & market oversight.
Shares in Barclays were up 0.2% at 142.62 pence each on Tuesday in London.
By Ife Taiwo; [email protected]
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