BBC News – RBS to get £15m ‘mortgage advice’ fine from regulator

[Legal Beagles]

Royal Bank of Scotland is to be fined about £15m by the city watchdog the Financial Conduct Authority (FCA), the BBC has learned. The UK financial regulator will hand out the fine to the bank over the issue of inappropriate mortgage advice to customers. The FCA is expected to release further details of its ruling […]

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[PAWS]

Re: BBC News – RBS to get £15m ‘mortgage advice’ fine from regulator

This latest fine will be another set back for chief executiveRoss McEwan, whose troubled bank made a £8.2bn loss last year.

They make a loss, they get more credit; they survive.
They get fined for bad business practices, they may not pay the fine and get a CCJ which remains unsatisfied. If they do pay the fine they will simply get the money from the taxpayers. Either way, they survive.
You have a business, you have a bad few months and cannot pay interest on your business loan. They close you down, destroy your credit rating so you cannot get back on your feet and then they drive you and your family insane with legal threats. You do not survive.

[Ruby]

Re: BBC News – RBS to get £15m ‘mortgage advice’ fine from regulator

Is there anything else left for RBS to be fined for?

[Amethyst]

Re: BBC News – RBS to get £15m ‘mortgage advice’ fine from regulator

Here's the final notice

[Legal Beagles]

FCA fines RBS and NatWest for failures in mortgage advice process – Financial Conduct

he Financial Conduct Authority (FCA) has today fined The Royal Bank of Scotland and NatWest £14,474,600 for serious failings in their advised mortgage sales business. The firms failed to ensure that advice given to customers was suitable. Two reviews of sales from 2012 found that in over half the cases the suitability of the advice […]

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[Legal Beagles]

Statement from Ross McEwan: FCA fine for RBS and NatWest

RBS and NatWest have today been fined by The Financial Conduct Authority (the FCA) for failings in their advised mortgage process between 1 June 2011 and 31 March 2013. In response to the FCA findings, at the end of November 2012, RBS and NatWest completely overhauled their mortgage sales process, re-trained all their mortgage advisers […]

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[Amethyst]

Re: BBC News – RBS to get £15m ‘mortgage advice’ fine from regulator

(5) there is no evidence of significant customer detriment and where customer detriment has been identified, the Firms have taken steps to compensate the customers.

not really sure how that scans with

(2) the mortgage sales process was not compliant with the requirements of MCOB and was not fit for purpose. In particular, the Firms:
(a) did not have an adequate process to determine whether customers could afford the mortgages that were being recommended to them. While the Firms had a process that considered expenditure based on ONS data, and took into account some key customer data, they were not considering the full extent and implications of a customer’s budget and additional committed or future expenditure before making a personal recommendation;
(b) were not providing compliant advice to customers who were seeking to consolidate existing debts, or were not making adequate enquiries to determine if customers would be consolidating debt into their borrowing before providing advice; and
(c) were not advising on term and were only taking account of the customers’ preference. As a result, the Firms were not giving consideration as to whether the customers’ preference was appropriate when recommending products to them. Whilst preference is important, firms must verify that the term is appropriate having regard to customers’ circumstances;

[Amethyst]

Re: BBC News – RBS to get £15m ‘mortgage advice’ fine from regulator

Guardian - Lisa Bachelor - http://www.theguardian.com/money/201...res-affect-you

Will I be compensated for these failures?

Although the FCA has fined RBS it has stopped short of insisting the bank compensates customers. This is because, overall, it concluded that, while sales processes were almost all non-compliant, no widespread consumer detriment has been discovered in the cases reviewed. However, five cases of consumer detriment were identified – meaning these were cases where unsuitable advice had been provided or where the customers received an unfair outcome. The FCA has refused to comment further on these or say what was done to rectify things. RBS also declined to comment.
The Financial Ombudsman Service is recommending that anyone who is concerned about a mortgage sold to them on an advised basis during the relevant period should contact the banks using the number or address above. Consumer group Which? agrees.

“RBS and NatWest have since overhauled their processes but any affected customers should get in contact with them directly,” said Which? executive director, Richard Lloyd. “Many people don’t shop around when they choose a mortgage, so it’s vital that customers don’t pay the price for bad advice.”

[Ruby]

Re: BBC News – RBS to get £15m ‘mortgage advice’ fine from regulator

Hmmm, not enough checks and bad advice??! I do wonder how many customers were affected? Those of us who have VERY dodgy unregulated second charge loans on our homes are however still being fobbed off by the FCA ......

Stinks of double standards :juge:

[Fred]

Re: BBC News – RBS to get £15m ‘mortgage advice’ fine from regulator

Hmmm, not enough checks and bad advice??! I do wonder how many customers were affected? Those of us who have VERY dodgy unregulated second charge loans on our homes are however still being fobbed off by the FCA ......

Stinks of double standards :juge:

Three years if I am not mistaken for the EU rules to take effect in cross border trades on loans mortgages etc, "second charge" is the biggest headache as it is put that it shall be incorporated with mortgage regulation in general across EU........................my point being our advanced banking nation is way behind integration for reasons unknown other than the obvious..............watered down by the courts pushed into taking greater concern over loss of property as a last resort......................the massive problems not challenged by the very organisations set up to protect !