The FSA has fined mortgage lender Cheshire Mortgage Corporation Limited £1.225m for failing to treat customers fairly in the sale of mortgages and arrears handling from October 2004 to the end of 2009.
The chief executive of CMCL, Henry Moser, has been fined £70,000 and agreed to step down from his role within three to six months.
Andrew Lawton, the firm’s compliance director, has been fined £13,500 and banned from holding a significant influence function.
The FSA has also required CMCL to carry out a redress exercise that could see approximately £2m paid to around 2,000 affected customers.
FSA director of enforcement and financial crime Tracey McDermott says: “CMCL’s lacklustre approach to regulation, combined with very poor practices in collecting arrears, meant that some customers already worried about being able to pay back their mortgages were put under undue pressure and sometimes ended up paying more than they should.
“The failings of Moser, Lawton and CMCL were serious and let down a vulnerable group of consumers. Where firms and individuals fail to comply with our rules and treat customers fairly they should expect to be held to account.”
In a statement, CMCL says: “Cheshire Mortgage Corporation Limited has reached agreement with the FSA in relation to a number of historical issues. Such issues pre-date a comprehensive review of the firm’s procedures and corporate governance standards and relate to a period of time up to the end of 2009.
“We sincerely apologise to any customers that may have been affected and have been actively contacting those customers to ensure that matters are appropriately addressed in a timely manner.
“We are pleased to have reached resolution with FSA on these matters and look forward to continuing to focus our attention on delivering high standards of service to our customers.”