Qualified advisers answering your
Financial Questions
call 0800 092 1245

GMAC-RFC hit by massive FSA fine

UK home loan provider GMAC-RFC has been hit with a massive FSA (Financial Services Authority) fine of £2.8 million and been ordered to repay £7.7 million in unfair and excessive charges to some 46,000 customers. This is by far and away the largest mortgage related fine issued by the FSA and the order to repay nearly £8 million has shocked many in the sector.

After a detailed investigation into the administration of GMAC-RFC and home loan charges levied on customers, the FSA very quickly came to the conclusion that these charges were excessive compared to the services offered. It also found that the company had been too quick to go down the repossession route for many customers, alleging that GMAC-RFC did not give due attention and consideration to the situation many of its customers found themselves in and initiated repossession proceedings before considering other options.

The company has now issued a statement apologising to customers who were affected by the overcharges and those who saw their homes repossessed soon after encountering difficulties. While it is good to see that some customers will receive repayments and the company has been fined, this is of very little compensation to those who lost their homes and were left financially destitute. At the pinnacle of the UK mortgage sector GMAC-RFC was ranked the 11th largest home loan provider in the UK, having originated out of GMAC Financial Services which was originally part of the General Motors group.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details