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Last updated 4th March 2024

UK auto lenders could face £13bn bill after FCA probe into commissions - The Financial Conduct Authority on Wednesday clarified the timeline of an investigation it launched earlier this month into historic interest-linked deals offered by motor finance companies.

The so-called discretionary commissions gave car finance brokers and dealers an incentive to raise interest rates on customer deals and were banned by the FCA in 2021.

FCA Car Finance Complaints

The FCA’s clarification sent shares in Lloyds Banking Group down more than 2 per cent while shares in specialist lender Close Brothers fell nearly 3 per cent. - Financial Times 24.01.24

CMA - Competition & Markets Authority - CMA Investigations

Competition & Markets Blog

HSBC Fined £57.4m by Bank of England for "serious failings" over its measures to protect customer deposits between 2015 and 2022

Under depositor protection rules, banks must have systems and controls in place to make sure that financial information is logged correctly.

One of HSBC's subsidiaries - HSBC Bank - incorrectly marked 99% of its eligible beneficiary deposits as "ineligible" for FSCS protection.

HSBC Bank also provided incorrect evidence that "failed to be duly open and cooperative with the PRA" by not alerting it over an approximately 15-month period about the problems identified.

The PRA said the failings were "so significant" that "it had materially undermined the firm's readiness" for any restructuring should it have been required.

The PRA's final notice 

Today’s fine imposed by the PRA on HBEU and HBUK was under the PRA’s pre-existing penalty policy.

The Bank expects to consult on further amendments to its enforcement policies in 2024

- reflecting the additional powers granted under the Financial Services and Markets Act 2023.

- 30th January 2024 BBC Business News & Bank of England's PRA Press Release

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FCA bans referral fees for debt packagers to help struggling consumers - 2nd June 2023 FCA Press Release

The debt packager firms earn money from fees paid when consumers are referred to solution providers

such as an Insolvency Practitioner for an Individual Voluntary Arrangement (IVA) in England, Wales and

Northern Ireland or, in Scotland, a Protected Trust Deed (PTD).

The FCA has seen evidence of debt packagers appearing to manipulate customers’ details so that they meet the criteria for IVAs/PTDs and using persuasive language to promote products without explaining the risks involved. 

In some of the worst cases identified, the FCA found evidence of customers in financial hardship who were recommended solutions which caused greater harm

Debt Advisor Referral Fees Banned by Regulator (FCA) - 2nd June 2023 BBC Business News

A five-stop tour through the banking panic of 2023 | Ed Conway | Business News | Sky News - 21st March 2023

European banking shares drop after Credit Suisse takeover - 20th March 2023

Financial Scandals & links to Information Sources

NatWest & RBS recent history

Shredded - Inside RBS, the Bank that Broke Britain

New proposals to reimburse victims of fraud are fundamentally flawed, say MPs -

Treasury Committee Chair, Harriett Baldwin MP, said:

Victims of fraud have been waiting far too long for a fair and functional scam reimbursement scheme. However, while these new proposals are a step in the right direction, the way the regulator plans to implement them is fundamentally flawed. Putting an industry body in charge of reimbursing scam victims is like asking a fox to guard the henhouse.

The regulator needs to take back control of the reimbursement process, rather than leave it in the hands of an industry body which is inherently conflicted. 6 February 2023

TSB fined 49m over IT system meltdown - BBC Business News - 20.12.22

Push Payment Fraud Scams - Which Campaigns for scam refunds for all - BBC Business News - 14.12.22

How much will PPI 2 increase PPI costs to Banks and will FCA disclose those additional costs?

Millions of PPI customers can now make new claims for up to 40,000 after latest court ruling - 'PPI 2' revolves around Hidden commission fees pocketed by a lender or broker following a PPI claim and if that was explained to the customer - 20th April 2021 - Daily Record

Customer survey ranks banks amid cost of living crisis

A survey of thousands of individuals and small businesses shows how well banks are looking after their customers as people face the rising cost of living.

Six High Street Banks broke CMA banking rules

Six High Street banks have broken rules imposed by the CMA under the Retail Banking Market Investigations Order 2017, including Metro Bank which has refunded affected customers

If you think your bank has breached the Retail banking Order. Get in touch at general.enquiries@cma.gov.uk

Banking giant HSBC has been fined 63.9m by the UK's financial regulator for "unacceptable failings" of its anti-money laundering systems.

See: FinCen Files Investigation - HSBC Hollow Promises on Dirty Money

The FCA said its fine did not relate to the US action.

Recently, HSBC announced profits of 7.8bn for the 1^st half of the year

Also: Banks including Barclays, RBS and HSBC have been fined 293m by the European Commission for colluding in the trading of foreign currencies. - 2^nd December 2021 BBC Business News

November 2021 - Danske Bank Overcharging

FCA fines Barclays 26 million over treatment of customers in financial difficulty

Between April 2014 and 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 treat customers fairly or to act with due skill, care and diligence.

Specifically, Barclays:

• failed to follow its customers contact policies for customers who fell into arrears

• failed to have appropriate conversations with customers to help understand the reasons for the arrears

• failed to properly understand customers circumstances leading it to offer unaffordable, or unsustainable, forbearance solutions

The FCA requires consumer credit firms to take adequate measures to properly understand customers financial difficulties. It also requires firms to show forbearance and due consideration to customers in arrears or in financial difficulties. Otherwise, a customer under financial pressures could end up making payments on a consumer credit loan at the expense of a priority debt, such as a mortgage, council tax, child support and utility bills.

The fair and appropriate treatment of customers experiencing financial difficulty remains a focus for the FCA and the FCA is working to ensure that firms raise their standards in this area.

Firms should ensure there is appropriate investment in their staff who work in collections and recoveries, including in training and effective management information, to allow firms to monitor customer outcomes and take appropriate action where needed.

Notes to editors

1. Final Notice (PDF)

2. The FCA found that Barclays breached Principle 6 and Principle 3 of the FCA Principles for Business. 

3. The FCA regulates some loans for small businesses. For example, if the business is a sole trader, a partnership with fewer than four partners, or an unincorporated association and the loan has a value of less than 25,000.

• 15^th December 2020 FCA Publication
  
  IBAS Comment: FCA 2020 Fines can be found at - https://www.fca.org.uk/news/news-stories/2020-fines

Up to date example of banks not treating their customers fairly:

The National Crime Agency is facing criticism for failing to investigate reports alleging that banks forged signatures and fabricated evidence in court actions to repossess homes - see

Crime agency under fire over bank signature forgery

MPs urged the NCA a year ago to investigate following a BBC News investigation.

Government-owned bank 'forging signatures' in repossession cases

When asked for a statement about the evidence, the bank trade body, UK Finance said: "Forgery is a criminal offence and banks will continue to be vigilant against such types of fraud. "We urge anyone with evidence of forgery taking place to report it to their bank as well as the relevant authorities." - 07.09.2020 BBC Business News - Eddy Weatherill comments: "Of course UK Finance would like customers to report such matters to their bank - but how much use has that been so far?

if a customer had instigated a forgery against the bank, they would already be on a free holiday at Her Majesty's pleasure - wouldn't they?

Both the FOS and FCA will have been alerted to these complaints and the banks will just deny such things occur and then cover them up - they do it very well indeed.

They've always got away with it - why not now too? Rotten apples in the bank's barrel are continuing to rot others, as corruption follows corruption and customer's assets are just taken by what continues to be a very rotten 'system' - which to IBAS is an all too familiar pattern. - 07.09.20

2007 Reckless Bank Lending

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IBAS - the Independent Banking Advisory Service has over 30 years continuous business banking dispute investigations negotiations experience with UK Lenders and provide professional, confidential guidance and direct assistance to UK directors and proprietors.

UK Businesses and Company Directors are provided with totally independent complaint investigations and dispute solutions.

IBAS are independent specialist investigators in UK business banking disputes, bank debt claims, Directors Bank Personal Guarantee and Business Mortgage Debt Claims.

IBAS acts only for UK Business banking customers with business banking account concerns, disputes, issues, problems and also business banking litigation disputes