FinesFSMA
Barclays Bank Plc
FRN 12270215 December 2020Fine · £26,056,400
01 · In plain English
What happened.
In December 2020 the FCA fined Barclays Bank UK, Barclays Bank and Clydesdale Financial Services a combined £26,056,400 for the poor treatment of consumer credit customers who fell behind on repayments or got into financial difficulty between April 2014 and December 2018. Barclays failed to have proper conversations with struggling customers to understand why they were in arrears, did not properly assess their circumstances, and as a result offered repayment plans that were unaffordable or unsustainable — breaching the FCA's rules requiring firms to treat customers fairly and to organise their affairs responsibly. Barclays had already identified around 1.5 million affected customer accounts and paid them more than £273 million in redress. It did not dispute the findings and settled for a 30% discount, without which the fine would have been £37,223,500.
Written by FRN Watch from the FCA's notice. The final notice below is the official record.
02 · Enforcement details
What the FCA register says.
On 15 December 2020, the FCA fined Barclays Bank UK PLC, Barclays Bank PLC, Clydesdale Financial Services Limited (Barclays) . The reason for this action is that between 1 April 2014 and 31 December 2018, Barclays breached Principles 6 and 3 of the Authority’s Principles for Businesses and CONC 6.7.2R, 7.2.1R and 7.3.4R from its Consumer Credit sourcebook by failing to show forbearance and due consideration to business and retail customers when they fell into arrears or experienced financial difficulties. The FCA’s action took effect on 15 December 2020 and a copy of the Final Notice is displayed on the FCA's web site here
03 · Press coverage
How it was reported.
- FCA fines Barclays £26 million over treatment of customers in financial difficultyFinancial Conduct Authority · 15 Dec 2020
- FCA fines Barclays £26m for mistreatment of customers in arrearsCity AM · 15 Dec 2020
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04 · Firm details
Firm on the FCA register.
- Firm name
- Barclays Bank Plc
- Firm reference number
- 122702
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