FCA has fined Clydesdale Bank £8.9 million for treating customers fairly (TCF) failings in respect of its mortgage business. In 2009, the firm discovered it had wrongly calculated repayments on 42,500 variable rate mortgage accounts, the consequence of which was that half the accounts were left with shortfalls. Customers who had underpaid as a result of the error then faced unexpected increases in their monthly payments. The firm had written to customers about the error and set up a call centre to deal with queries but had implied the customers had no choice but to bring their repayments up to date. FCA said that the customers were in fact not obliged to correct the firm's errors and criticised the firm for putting its commercial interests above those of its customers. The firm has now introduced a redress scheme to compensate those who suffered or made overpayments as a result of the error. FCA said the fine would have been larger were it not for this scheme. (Source: FCA Fines Clydesdale for TCF Failings)