Redstone Mortgages fined £630k for arrears handling failures

Scott Sinclair
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Skipton-based lender Redstone Mortgages has been fined £630,000 and ordered to pay customer redress for unfairly treating customers in arrears.

Between 1 January 2007 and 5 August 2009, the company consistently failed to ensure its staff were acting in the best interests of clients, the FSA found. Among a number of failings, it focused on reducing customers' arrears to less than two months regardless of their clients' circumstances and charged customers excessively. In some cases, it included arrears fees and charges in the balance on which an early repayment charge was calculated. Redstone has agreed to redress customers who were charged unfairly while they were in arrears. The FSA estimates the redress will cost the fi...

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