FSA fines Investec unit £1.2m

12th Apr 2010 16:42

The Financial Standards Authority (FSA) has fined the sub-prime mortgage lender Kensington Mortgage Company, a division of the South African bank Investec, £1.2m pounds for poorly treating customers facing mortgage arrears.The regulator said customers in arrears were charged unfair and excessive charges. It said that Kensington concentrated on the repayment of mortgage arrears over a short period of time rather than agreeing an arrangement to pay the arrears based on the customers' individual circumstances.'Kensington would like to apologise to all those customers who were impacted by these charges and would like to reassure you that we are working to redress those customers affected as quickly as possible.,' said Kensington in response to the fine.'This case should serve as a strong reminder to firms dealing with retail customers, especially customers in a vulnerable position such as those with mortgage arrears, that the FSA will take robust action where it sees that customers are not treated fairly,' said Margaret Cole, director of enforcement and financial crime at the FSA. 'Retail firms which fail in their obligations to customers should expect not only a substantial fine but also that they will have to pay back customers who have been disadvantaged.'