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Thursday, 28 August 2014

RBS fined £14.5m over mortgage selling

The Telegraph

Royal Bank of Scotland has been fined £14.5m by the City regulator for failing to ensure that advice given to mortgage customers was suitable.

The Financial Conduct Authority (FCA) said the £14,474,600 fine for RBS and the NatWest reflected "serious failings" in their advised mortgage sales business.

The firms failed to ensure that advice given to customers was suitable, according to the FCA. Two reviews of sales from 2012 found that in over half the cases the suitability of the advice was not clear from the file or call recording.

Customers were not advised properly over the affordability for them of mortgages or the appropriate term of products being offered. Others were given poor advice when looking to consolidate their debts.

Some bank advisers even offered their personal views on the possible future movement of interest rates. "This was highly inappropriate and may have resulted in the borrower being sold the wrong type of mortgage for them", said the FCA. 

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