The Financial Services Authority has fined GMAC-RFC Limited £2.8m for failing to treat customers fairly with regard to arrears and repossessions. In addition, GMAC has agreed to carry out a customer redress programme at a likely cost of up to £7.7m (plus interest) for more than 46,000 mortgage customers.
The FSA has fined GMAC for a number of serious and sustained failings, which included breaches of principles three (management and control) and six (customers' interests) as well as numerous breaches of the Mortgages and Home Finance: Conduct of Business requirements. The FSA has set out a catalogue of issues in the final notice which appear to have come to light as a result of GMAC being part of the FSA's themed review of arrears handling and repossessions which started in 2008. The specific regulatory failures included: Failure to ensure that mortgage servicing staff (particularly new and temporary staff) were given sufficient training in treating customers fairly and so also failed
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