London Daily

Focus on the big picture.
Friday, Jul 11, 2025

Barclays fined £26m for poor treatment of customers

Barclays fined £26m for poor treatment of customers

Barclays has been fined £26m for the way it treated customers who fell into debt or experienced financial problems.

Among those poorly treated were bereaved people whose financial issues should have been better assessed.

The City regulator, the Financial Conduct Authority (FCA), said Barclays' poor treatment of its customers "risked making these difficulties worse".

The bank has compensated those affected, paying over £273m to 1.53 million customer accounts since 2017.

The FCA said Barclays knew about many of the shortcomings in its systems and controls as early as 2013, but failed to adequately resolve them until late 2018.

"Firms must treat consumer credit customers fairly, including when they find themselves in arrears," said Mark Steward, of the FCA.

"We will take action against unfair treatment, or where firm systems expose customers to the risk of unfairness. While this case predates the pandemic, this message is especially important as the impact of coronavirus continues to affect household incomes and budgets."

'Breathing space'


The problems affected individual current account holders and small business customers between April 2014 and December 2018.

The regulator found these people had been poorly treated when they fell behind on credit repayments.

They included people whose loved ones had died, who were not given sustainable or affordable debt repayment plans.

The bank failed to contact people quickly enough, leading to more debt charges.

Staff did not have appropriate conversations with people in order to understand why they were facing financial problems.

Then, when they put repayment plans in place, they were delayed, included errors, had mistakes with payments, and charged interest or fees during a breathing space hold on payments, the FCA said.

The bank also missed signs that some of these customers were in a vulnerable situation "in a significant number of cases".

Apology


A Barclays spokeswoman said: "Barclays is a responsible lender and we strive to achieve good outcomes for our customers.

"We would like to apologise to those customers for not providing the level of service we should have."

She added that the bank had made changes to its systems, processes, and training to correct the issues and that "the vast majority of customers who were impacted have already been contacted".

Any firm offering credit should properly understand customers' financial difficulties and show forbearance to those in arrears or in financial trouble.

Otherwise, they could end up trying to pay their debt to the bank instead of a priority debt, such as a mortgage, council tax, child support and utility bills.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×