Overview

• TSB Bank was fined £10.9 million by the FCA for failing to treat customers in arrears fairly, affecting mortgage, overdraft, credit card, and loan customers.
• The bank's inadequate systems between 2014 and 2020 risked unaffordable payment plans and inappropriate fees, causing stress and uncertainty for customers.
• TSB has paid nearly £100 million in redress to more than 230,000 affected customers and has implemented a £105 million program to address the issues.
• The FCA's investigation revealed that TSB's staff training and incentive schemes prioritized the number of payment plans over assessing customer circumstances.
• TSB also experienced an app outage on the same day as the fine announcement, leaving customers unable to access their accounts temporarily.