The FSA has fined mortgage lender, Bridging Loans Ltd, £42,000 and its director Joseph Cummings £70,000 for serious failures relating to lending practices and for failing to treat customers fairly in arrears.
In the first case of its kind by the FSA against a mortgage lender’s senior management concerning irresponsible lending and unfair practices in respect of dealing with customers in arrears, the regulator also banned Joseph Cummings, and taken action to prevent three other directors at the firm from being able to operate in senior positions within the financial services industry.
Bridging Loans Ltd has agreed not to conduct new FSA regulated mortgage business and the FSA has taken action to ensure that it cannot repossess or sell the homes of any its FSA regulated mortgage customers. Bridging Loans Ltd has also agreed to provide redress to customers who have been adversely affected by its misconduct.
The FSA said it regards the failings as particularly serious as they impacted on customers who were financing or re-financing their home, some of whom already had impaired credit histories.
Cummings has been fined and banned for a number of failings. Whilst in charge of Bridging Loans Ltd, he failed to act with integrity by knowingly misleading a customer, and assessed customers’ complaints based on his perception of their character, without properly reviewing their circumstances, branding some customers as “evil””.
