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FSA issues fine over secured loans

FSA issues fine over secured loans

Category: Loans

Updated: 31/10/2008
First Published: 20/10/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Two directors of Abbey Mortgages have been fined after the Financial Services Authority (FSA) found fault with their sale of secured loans.

A review of mortgages sold between June 2006 and June 2007 found that William John Evans and Gary Howes did not carry out sufficient checks into the information provided by customers.

This left the firm susceptible to fraud and put financially vulnerable customers at risk, the FSA stated.

"Obtaining and clearly recording the right information from customers is not just about process but is an important step in preventing financial crime and giving customers the right advice and treating them fairly," remarked head of retail enforcement at the body Georgina Philippou.

The directors were fined £30,000 each and Abbey Mortgages has agreed to undertake a review of its past business.

Last week the FSA fined Alliance & Leicester for failing to provide customers with enough information when selling insurance alongside unsecured loans.

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