The Financial Conduct Authority (FCA) levied the fine, according to Reuters, after learning that the bank had failed to make sure that borrowers who were behind on their loans, credit card debt, mortgages, and overdrafts were treated fairly. As a result, TSB has given 232,849 impacted customers a substantial £99.9 million in compensation.

The FCA emphasized that TSB's deficient procedures and controls resulted in unfair outcomes for its clients, putting them at risk of accepting unsuitable fees and payment plans that were too costly. 2020 saw the regulatory authority order an independent probe to look examine the bank's practices regarding handling of clients who fell behind on their payments.

Therese Chambers, the co-head of enforcement and market supervision at FCA, remarked, "TSB's appalling systems and controls exposed its customers to risk of harm and meant it missed opportunity after opportunity to do the right thing." She pointed out that although the bank did finally take corrective measures, the TSB didn't really address the problems until the FCA started a review.

In reaction to the results, TSB has spent £105 million on an extensive program designed to address the faults found and stop them from happening again.