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20/10/2008
Mortgage broker fined after exposing over 900 customers to unsuitable advice |
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A Doncaster-based mortgage broker is the latest in a string of companies to be fined by the Financial Services Authority (FSA) for failing to provide a suitable service.
According to the watchdog, Orchid Financial exposed over 900 customers to the potential risk of being sold a mortgage that was not appropriate to their circumstances.
The FSA found that between October 2005 and March 2008 Orchid Financial had failed to obtain and record all the information from its customers that may be relevant to provide them with suitable advice.
Jonathan Phelan, head of retail enforcement, FSA, said: "This fine sends out a clear message to brokers that their advice must be of good quality – otherwise there is a likelihood that they will not be treating customers fairly."
In a landmark case in June, the FSA banned and fined a mortgage broker for mortgage fraud. Following the FSA’s actions, Margaret Cole, director of enforcement at the FSA, explained that the watchdog would "intensify [their] crackdown on mortgage fraud". |
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