BARC Barclays Plc

By Sabela Ojea 

A top U.K. regulator has levied a GBP26 million ($34.7 million) fine on Barclays PLC-related units over the treatment of customers that fell into arrears or went through a difficult financial situation.

The Financial Conduct Authority said Tuesday that between April 2014 and December 2018, Barclays and some affiliates failed to help some customers understand the reason behind missed payments and provided solutions that were unaffordable or unsustainable.

The FCA requires consumer credit firms to take measures to understand customers' financial difficulties and to show forbearance to customers who have missed payments or are struggling financially.

The regulator cited Barclays Bank UK PLC, Barclays Bank PLC and Clydesdale Financial Services Ltd., a wholly owned subsidiary of Barclays Bank, for the violations.

"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," Mark Steward, the FCA's director of enforcement and market oversight, said in a statement. Barclays didn't dispute the FCA's findings, according to the regulator.

Barclays said that it has since implemented changes to its systems, processes and training. The bank also has repaid more than GBP273 million to at least 1.53 million customer accounts since 2017, the FCA said.

"Since the issue was first identified, we have implemented a number of changes to our customer journeys, systems, processes and colleague training to correct it, and the vast majority of customers who were impacted have already been contacted," a Barclays representative said in a statement.

The FCA said Barclays identified some of the problems in 2014 but didn't immediately rectify the issues due to systems and controls failures.

The regulator reduced Barclay's fine by 30% because the bank agreed to settle the case and didn't dispute the regulator's findings. The bank would have faced a GBP37.2 million penalty if the FCA hadn't taken into account its redress program.

"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.

(END) Dow Jones Newswires

December 15, 2020 16:00 ET (21:00 GMT)

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