FSA Fines BoS £4.2 Million for Recordkeeping Violations

The Financial Services Authority has imposed a pound;4.2 million fine on the Bank of Scotland for keeping inaccurate mortgage records in relation to some 250,000 of its customers. The errors had built up over a period of seven years, and resulted from information's being kept on two separate unaligned systems, as well as inadequate updates of those systems. As a result of the failings, many customers were wrongly excluded from receiving goodwill payments following changes to their mortgage contracts.