BRADFORD-based Yorkshire Building Society has today been fined more than £4 million for failings when dealing with mortgage customers with payment difficulties.

The Financial Conduct Authority has fined the mutual £4.15 million for failings between October 1, 2011 and July 21, 2012, when YBS call handlers failed to deal properly with customers in payment difficulties in order to identify promptly the cause of their problems and their future financial prospects.

The FCA said these failures led to significant delays in determining the most appropriate payment solutions.

YBS properly viewed repossession as a last resort but failed to recognise that delays in reaching long term payment solutions meant that some customers incurred increased fees and associated interest.

YBS has already started to refund these customers, paying out £8.4 million to around 33,000 borrowers .

Tracey McDermott, FCA director of enforcement and financial crime ,said: “Customers in financial difficulty need to be treated fairly and sensitively. Firms must ensure that they are taking into account the particular circumstances affecting customers who find themselves in difficulty.

“By allowing cases to drift without agreement, YBS’s actions meant that customers in vulnerable circumstances risked falling into further financial difficulty.”

Chris Pilling, YBS chief executive, said: " I hope the refunds we have voluntarily given to customers and the changes we have made demonstrate how seriously we have taken this issue and our commitment to put things right."

YBS has received a 30 per cent discount on the fine for agreeing to settle the matter early in the FCA investigation.

* Were you are struggling borrower who experienced problems when dealing with YBS call handlers? Call the T&A newsdesk on 01274 705292 or email newsdesk@telegraphandargus.co.uk