GMAC-RFC has been fined £2.8 million by the FSA for unfair treatment of customers in arrears and repossessions and will pay up to £7.7 million in customer redress.
The regulator found that GMAC-RFC has failed over 46,000 mortgage customers.
Between 31 October 2004 and 30 November 2008, a number of serious failings by GMAC-RFC were identified in relation to its dealings with customers experiencing arrears and repossessions. These include:

* excessive and unfair charges for customers that did not reflect administration costs
* proposing repayment plans that did not always consider a customer’s individual circumstances
* inadequate training of mortgage servicing staff in handling of arrears and repossessions and
* issuing repossession proceedings before fully considering all the alternatives.

The case sets a precedent, with the FSA concluding this investigation in a matter of weeks, and the firm working with the FSA to agree a process to enable customers to receive redress as quickly as possible.
As a result of early settlement, the firm qualified for a 30% discount under the FSA’s settlement discount scheme. Without the discount the fine would have been £4million.
Margaret Cole, director of enforcement and financial crime, said: “This case shows credible deterrence in action. It is an excellent example of what the FSA’s more intrusive approach can achieve for consumers