Yorkshire BS fined £4.1m for compensation delays

A BUILDING society has been fined £4.1 million on top of the £8.4m it is already paying to compensate mortgage customers who were poorly treated when they got into difficulties.

The Financial Conduct Authority (FCA) said delays in determining the most suitable repayment plans resulted in some customers at Yorkshire Building Society incurring increased fees and associated interest.

The Bradford-based lender has already started the process of refunding 34,000 customers an average of £247 for mortgage fees and accrued interest charged since 2009.

Announcing the fine of £4.1m, FCA enforcement direc- tor Tracey McDermott said that, by allowing cases to drift without agreement, customers in vulnerable circumstances risked falling into further financial difficulty.

McDermott added: “Firms must ensure that they are taking into account the particular circumstances affecting customers who find themselves in difficulty.”

Yorkshire said it has increased staff training and overhauled practices in order to better assess how it can help customers in financial difficulty.

Chief executive Chris Pilling said: “I hope the refunds we have voluntarily given to customers and the changes we have made demonstrate how seriously we have taken this issue.”