Barclays fined £ 26million for treatment of customers
Tolga Akmen | AFP | Getty Images
Britain’s Financial Conduct Authority said on Tuesday it had fined Barclays £ 26million ($ 34.65million) for failures to deal with the bank’s handling of overdue customers.
Banks will take note of the penalty as they prepare for an increase in bad loans as customers struggle to make ends meet during the worst recession in 300 years due to the pandemic.
The Financial Conduct Authority said Barclays has proactively addressed those customers, paying more than £ 273million to at least 1.5million customer accounts since 2017 as part of a program nearing completion.
Barclays did not follow its own policies for dealing with overdue customers by not speaking to them to understand why they weren’t able to make refunds, the watchdog said.
Barclays said they implemented changes once the problem was identified and the vast majority of affected customers have already been contacted.
“We would like to apologize to these customers for not providing the level of service that we should be having,” Barclays said in a statement.
The FCA has said it requires consumer credit companies to show tolerance and consideration to customers who are in arrears or in financial difficulty.
“Otherwise, a customer under financial pressure could end up paying consumer credit at the expense of senior debt, such as a mortgage, housing tax, child support, and utility bills. “the FCA said in a statement.
“The FCA recognizes the challenges businesses face in this area due to the coronavirus, which only increases the importance for businesses of treating financially troubled customers fairly and appropriately,” the dog said. on call.
The FCA said Barclays had not challenged its findings and agreed to settle the case, resulting in a 30% reduction on the fine which would otherwise have been £ 37.2million.