The FCA has published the final notice issued to TFS Loans Ltd (in administration), a provider of guarantor loans. The FCA has fined TFS £811,900 for breaches of Principles 3 and 6 and CONC. It is now required to provide redress to guarantors who have suffered loss as a result of the firm not conducting appropriate checks.
The FCA found that TFS had failed to treat customers fairly or take reasonable care to organise and control its affairs responsibly because it failed to collect appropriate information on guarantors’ financial circumstances. As such, when those guarantees were called upon, some guarantors were unable to afford what they entered into, risking significant personal financial hardships and distress.
TFS has now provided redress to customers who were overcharged and it has agreed to conduct an appropriate redress programme to ensure customers’ credit history is repaired and release them from any further liability.