Bank of Scotland fined $6.8 million for mortgage errors

LONDON Fri Oct 19, 2012 5:15am EDT

LONDON (Reuters) - Britain's financial regulator said on Friday it had fined Bank of Scotland (BoS) 4.2 million pounds ($6.8 million) for failures in its systems which meant it held inaccurate mortgage records for 250,000 of its customers.

The Financial Services Authority said Bank of Scotland, which is now part of Lloyds Banking Group (LLOY.L), had relied upon incorrect records for considerable periods of time between 2004 and 2011.

"These mistakes stemmed from the fact that Bank of Scotland had an inadequate mortgage records system meaning they could not identify which of those 250,000 customers were subject to a cap on their standard variable rate," said Tracy McDermott.

($1 = 0.6199 British pounds)

(Reporting by Matt Scuffham; Editing by Myles Neligan)

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