FSA fines Bank of Scotland £4.2m for mortgage failings

Bank of Scotland has been fined £4.2m by the Financial Services Authority (FSA) for failing to keep accurate mortgage records.

The watchdog said failures in the bank's systems meant it held inaccurate mortgage records for 250,000 of its customers. The FSA said mortgage information was being held on two separate unaligned systems, and problems also arose where manual updates were not always carried out. The bank then relied on incorrect records for considerable periods between 2004 and 2011. The FSA explained the issue first came to light when Bank of Scotland put in place a programme to rectify customer confusion over information about their contracts, specifically standard variable rate mortgages. Whil...