BARC Barclays Plc

By Sabela Ojea

The Financial Conduct Authority said Tuesday that it has levied a 26-million-pound ($34.7 million) fine on Barclays PLC over the treatment of customers that fell into arrears or went through a difficult financial situation.

The U.K. regulator said that between April 2014 and December 2019 some retail and small business customers of the FTSE-100 listed bank, who had been offered consumer credit, weren't treated as they should have been when they fell into arrears.

"Consumers should feel reassured that their lender will work with them to help resolve any financial difficulties, whereas Barclays's poor treatment of its customers risked making these difficulties worse," said Mark Steward, director of enforcement and market oversight at the FCA.

The bank also failed at helping its customers understand the reason behind their arrears, with the solutions provided unaffordable or unsustainable, the FCA said.

The watchdog said Barclays identified some of these problems in 2014 but that they weren't fully rectified due to systems and controls failings.

However, the FCA said "adequate measures to resolve the problems were subsequently taken. Barclays has contacted all customers whom they think may be due for compensation."

The bank received a 30% discount to the fine as it agreed to settle the case and not dispute the FCA's findings, the regulator said.

The financial penalty would have risen to GBP37.2 million if the U.K. financial watchdog hadn't taken into account the bank's redress program when setting its fine.

"While this case predates the pandemic, this message is especially important as the impact of coronavirus continues to affect household incomes and budgets," the FCA said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

December 15, 2020 09:43 ET (14:43 GMT)

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