The Sub-prime lender of the country Kensington has been fined by the Financial Services Authority (FCA) for levying unfair excessive charges from its customers.

The mortgage company has to pay £1.2million towards fine and will pay out additional £1.1million to the customers who have been sufferer of this unfair treat. Kensington has been accused of being unfair to its customers when they have fallen behind on their mortgage repayments.

The Financial Service Authorities has informed that the company has offered home loans to customers with poor credit histories. This has happened while the country was dealing with severe credit crunch. Later when the borrowers have fallen into arrears the company has treated its customers improperly.

The FCA has acknowledged about three major charges against Kensington. Between 1 January 2007 and 31 October 2008, the company had actually forced its customers to repay arrears. FCA has also accused its staffs of mistreating the struggling borrowers. The company has to repay an average of £8.75 for cancelled direct debits, £25 for the charge of administration fee, and £37 for excessive early repayment charges.