The Netherlands Authority for the Financial Markets (AFM) has imposed a €2.4m monetary penalty on International Card Services (ICS), a wholly-owned subsidiary of ABN Amro, for providing excessive credit limits to its clients.
The €2.4m fine relates to shortcomings in ICS’s lending practices from June 2012 to March 2015. Some ICS clients were provided with credit limits that were too high, for which they paid interest and, in some cases, fees.
Earlier in March, ICS took the initiative itself and prepared a compensation plan for the clients concerned.
ICS said that it has extended its full cooperation in the AFM’s probe into the matter and has taken necessary steps to improve the shortcomings in its service.
ICS has started implementing the compensation plan for the affected clients, and the plan is proceeding as expected.
International Card Services serves a portfolio of more than three million credit cards, and has been issuing and operating Visa and MasterCard credit cards in the Netherlands for over 25 years.
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