Emma RadmoreThe FCA announced today that it was imposing a £2.77 million fine on Moneybarn Limited for not treating customers fairly between 1 April 2014 and 4 October 2017.
The car finance provider had failed to provide adequate information to their customers at two stages (1) in advance of entry into the loan – they did not communicate the consequences of failing to keep up with their repayments and (2) when customers fell into arrears – they did not provide them with the opportunity to clear the arrears in a realistic and sustainable period.
Moneybarn agreed to pay voluntary redress of more than £30 million to all 5,933 customers this affected. This treatment was taken into account by the FCA and resulted in them discounting their fine by 30%.