GMAC-RFC fined £2.8million for unfair treatment of customers

First Time Buyer Help and Information_01

unfair treatment of customers – Source: The Financial Services Authority (FSA) has today announced it has fined GMAC-RFC Limited (GMAC-RFC) £2.8million for failing to treat customers fairly and secured redress of up to £7.7million (plus interest) for over 46,000 mortgage customers.

unfair treatment of customers – Between 31 October 2004 and 30 November 2008, a number of serious failings by GMAC-RFC were identified in relation to its dealings with customers experiencing arrears and repossessions. These include:

1. excessive and unfair charges for customers that did not reflect administration costs;

2. proposing repayment plans that did not always consider a customer's individual circumstances;

3. inadequate training of mortgage servicing staff in handling of arrears and repossessions; and

4. issuing repossession proceedings before fully considering all the alternatives. The case sets a precedent, with the FSA concluding this investigation in a matter of weeks, and the firm working with the FSA to agree a process to enable customers to receive redress as quickly as possible.

As a result of early settlement, the firm qualified for a 30% discount under the FSA's settlement discount scheme. Without the discount the fine would have been £4million. Margaret Cole, director of Enforcement and Financial Crime, said: “This case shows credible deterrence in action. It is an excellent example of what the FSA's more intrusive approach can achieve for consumers, and it reflects what we said in our Mortgage Market Review last week about unfair mortgage arrears charges.

Mortgage lenders and third party administrators should read this final notice and the Mortgage Market Review and take action in the interests of their customers.”

Bitcoin: 1BJbBAvdNHcZPZBnaFpyExUmAD9H1crosU



If you enjoyed this article FEEL Free to TIP My First Home Blog:

Any Amount Welcome 🙂

Dash: XmARRjJ9y2zUUgiPWPMrjviWWCvpuogwKd

Dogecoin: D5vAJ9ydfsNX1VE6e93Wh16gmUfVSUSKQq

Bitcoin: 1BJbBAvdNHcZPZBnaFpyExUmAD9H1crosU

Bitcoin Cash: 1Q8njMG4LPqFYthtNu6rq2Rbq9JqKXaPg1

Ethereum: 0x60454606e1f66C09e4fD7977b844718b683B2836

{ 0 comments… add one }

Connect with Facebook

Leave a Comment


Related Posts

Tips And Tricks For Real Estate Investment Success
Tips And Tricks For Real Estate Investment SuccessReal Estate Investment - Getting started investing in real estate as a career is something that...
Put Your Worries To Rest, Read This Article All About Real Estate Investing
It's a fact that investing in Real Estate has turned ordinary people into millionaires in the past. That said, some people just want to make a st...
Tips And Tricks For Real Estate Investment Success (Real Estate Investing)
Real Estate is a very trendy profession. Flipping foreclosed houses seems to be very profitable. Some television programs are dedicated to the pr...
powered by RelatedPosts