FSA Fines Bank Of Scotland $6.7M For Faulty Mortgage Records

Law360, Chicago (October 19, 2012, 2:57 PM EDT) -- The U.K. Financial Services Authority said Friday it has fined Lloyds Banking Group PLC unit Bank of Scotland £4.2 million ($6.7 million) for having inaccurate mortgage records for roughly 250,000 customers over a seven-year period.

The problem stemmed from the bank's practice of keeping mortgage information on two separate, unaligned systems, as well as processing errors in which manual updates were not always implemented, the United Kingdom's financial services regulator said.

As a result, Bank of Scotland relied on incorrect records for "considerable periods of time"...
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