DEUTSCHE Bank Fined by FSA for Irresponsible Lending

Yesterday, on February 23rd, it was announced that DEUTSCHE Bank was fined by the Financial Services Authority (FSA) for irresponsible mortgage lending.

The fine amounted to £840,000; moreover, the lender is to pay £1.5 million in compensation to borrowers.

The reason for such action is poor treatment of customers in arrears by DEUTSCHE Bank as well as failure to inform them about certain terms.

Commenting on the situation, Ms. Margaret Cole of the Financial Services Authority, said that British "firms need to understand we will not tolerate lax lending practices.”

It is important to note that this is the first time that the FSA has launched actions for irresponsible lending. In future, more banks are expected to be fined and ordered to compensate borrowers. As such, Ms. Cole warned that “firms which fail in their obligations to customers should expect not only a substantial fine but also that they will have to pay back customers who have been disadvantaged by their failings.”