A UK mortgage subsidiary of General Electric has been fined more than £1m by the City watchdog for sloppy systems that caused its customers £2.3m in losses.

The Financial Services Authority said GE Money Home Lending had been fined £1.12m for the failures that had left 684 mortgage borrowers nursing losses until the lender addressed the problem.

On top of the fine, GEMHL has paid out £7.04m in redress to 5,245 customers.

It is the first time the regulator has fined a mortgage lender over its actual lending processes.

Financial Times