TSB Fined £10.9 Million for Failing Customers in Financial Difficulty

The Financial Conduct Authority penalized TSB for inadequate systems and controls that risked unfair treatment of over 230,000 customers.

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.