Bridging Loans Limited - grounds for defending or overturning possession proceedings

[Killerschick]

This FSA enforcement case seems to have gone a bit under the radar even though there is some great stuff in their press release for anyone who might have had issues with them. The full press release can be found here:-

 

http://www.fsa.gov.uk/pages/Library/Communication/PR/2010/159.shtml

 

Of particular interest is the section on the head honcho, Joseph Cummings, who, among other serious failings branded customers who complained 'evil' and more usefully for any potential claim, was found to have charged some customers excessive amounts:-

 

Joseph Cummings

 

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”.

As an approved person, Cummings also failed to act appropriately when dealing with customers entering mortgage contracts or when handling customers’ complaints and subsequently, in his treatment of customers in arrears. For example, he:

• failed to lend responsibly, leading to a risk that customers would enter into contracts they could not afford;
  
• failed to ensure charges and interest were attributed accurately and fairly to customers’ accounts, with charges allocated inconsistently and with some customers paying excessive charges; and
  
• tried to deter customers from complaining or seeking redress by, for example, threatening to charge a customer for time spent dealing with their account when they complained to the ombudsman or refusing to deal with a customer unless they withdrew their complaint to the ombudsman.
  

Cummings also acted recklessly by failing to properly assess a third party underwriter who acted as a customer facing broker and was the sole source of information upon which the firm assessed 63 FSA regulated loan applications. Given the underwriter financially gained from each loan, this created a conflict of interest.

Cummings refused to co operate with the FSA during the course of the investigation, including denying the FSA access to Bridging Loans Ltd’s office.

Other directors at Bridging Loans Ltd have also been subject to action by the FSA as a result of its investigation.

 

The case hasn't got a lot of press attention but Bridging Loans Limited did make it into the industry mouthpiece Bridging and Commercial in a defensive way:-

 

http://www.bridgingandcommercial.co.uk/newsstory?id=1319&type=newsfeature&title=bridging_lender_blames_fsa_fine_on_old_school_practices

 

The Mirror has more recently picked up on the Bridging Loans Limited case in their Penman and Sommerlad investigate column:-

 

http://blogs.mirror.co.uk/investigations/2010/11/disappearing-act-by-award-winn.html

 

Bridging Loans Limited can't lend FSA regulated mortgages/bridging loans anymore but can still lend on buy to lets & give second charge loans so BEWARE and if you have been ripped off by them it might be a good time to launch some action against Bridging Loans Limited.