By Lea Pachta
Kensington Mortgages, a sub-prime mortgage company has been fined £1.225m by the Financial Services Authority (FSA) for treating borrowers who were in arrears unfairly. The FSA also ordered the firm to repay £1.1m in excessive fees to the customers who have been discriminated against.
The sub-prime mortgage company released following statement:
“Kensington confirms we have agreed a settlement with the Financial Services Authority following an investigation into the servicing of mortgage accounts in arrears and certain associated charges during the period 1st January 2007 to 31st October 2008.
“We apologise to all those customers who were impacted during this period and we are working to redress those customers affected as quickly as possible.
“This was a retrospective investigation into arrears processes and our charges were in line with the market at the time. However, we acknowledge that there were certain fees where it was felt that the charge did not accurately reflect the additional work and cost incurred by Kensington. We no longer charge these fees and will be writing to customers who have been affected.”
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