FSA issues first ever fine for mortgage lender

GE Money Home Lending must pay £1.12m for having systems and controls which caused 684 borrowers to suffer financial loss. The FSA says the fine, a first in the industry, sends out a clear signal to lenders that they must treat customers fairly and prevent them suffering financial loss where possible. The customers concerned signed mortgage contracts subject to a clause where an amount of around £3,000 was withheld from the mortgage advance as a condition of the loan. Usually the borrower was required to make specified repairs to the property concerned and the money would be retained for...