FCA gets judgment against unauthorised mortgage broker

FCA has obtained a judgment against a company, its parent, their director and his father. It found they arranged high-interest, unaffordable bridging loans for vulnerable consumers who were about to be evicted from their homes, and took huge fees for doing so. In some cases, London Property Investments (U.K) Limited, NPI Holdings, Daniel and Tony Stevens bought the properties for less than their value and then rented them back to the former owners. In doing so they carried on activities that would have required them to hold FCA permissions for arranging mortgage contracts and sale and rent back agreements.

As a result of the judgment, 22 restrictions registered against properties must be removed.

Mark Steward noted that the defendants were not only carrying on unauthorised regulated activities, they were doing it to take advantage of people who were struggling and in vulnerable circumstances.

There will be a later trial to consider remedies.

Emma Radmore