LONDON (dpa-AFX) - The U.K.'s Financial Conduct Authority has imposed a fine of 2.77 million pounds on Provident Financial plc's car and van financing arm Moneybarn, for not treating customers fairly when they fell behind with loan repayments while in financial difficulties, between 1 April 2014 and 4 October 2017.
The FCA alleged that Moneybarn did not communicate the likely financial consequences of failing to keep up with payments to customers in a way which was clear, fair and not misleading.
More than 1,400 customers - many of whom were vulnerable - subsequently defaulted after entering into unsustainable short-term repayment plans.
The FCA said that Moneybarn has voluntarily provided redress of more than 30 million pounds to all 5,933 customers potentially affected by the failings without requiring them to demonstrate that they have suffered any financial detriment.
Provident Financial confirmed that the Financial Conduct Authority investigation into aspects of Moneybarn's historic lending practices is now closed.
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