The Financial Services Authority (FSA) has fined mortgage lender Cheshire Mortgage Corporation £1.2m for failing to treat customers fairly when collecting arrears. The Cheadle-based company was forced to pay up £1.225m for failures across its mortgage sales and arrears processes and two directors have been banned. Cheshire’s chief executive Henry Moser has been fined £70,000 and has agreed to step down from his role within three to six months. Andrew Lawton, the firm’s compliance director, has been fined £13,500 and banned from holding a significant influence function. The FSA has also forced Cheshire to pay out around £2m to nearly 2,000 customers in compensation. An investigation into the mortgage lender, which provided loans to customers with poor credit histories, found that when Cheshire transferred customers in arrears to Monarch Recoveries for debt recovery, they were charged £150. This charge was made despite the fact that Monarch Recoveries was despite an in-house company.....Read more here:FSA fines mortgage lender £1.2m as 2,000 customers compensated