Mortgage lender fined

Mortgage lender GE Money Home Lending has been fined more than a million pounds by the Financial Services Authority (FSA).

The FSA said that on top of the £1.12 million fine slapped on it by the regulator, GE Money has repaid more than 5,000 customers a total of £7.04 million on both regulated and non-regulated mortgage contracts.

GE Money Home Lending agreed to settle the dispute early and was given a 30 per cent reduction in the penalty imposed on it.

FSA director of enforcement Margaret Cole said: "The firm''s failings were serious because a large number of borrowers, including some with impaired or non-standard credit profiles, were put at risk of financial loss."

She added the firm identified the system failings which led to the situation in 2004 but failed to take corrective action for more than two years.

Meanwhile, GE said its profits will be $20 billion (£10 billion) down on last years and expects its financial services businesses to earn $2 billion this year, according to the Associated Press.

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