Record fines from FSA

Recently released figures have shown that the UK’s financial regulator has been handing down record fines in 2008 as a result of its clampdown on mortgage related fraud and mis-selling of insurance to consumers. The city watchdog is said to have handed down fines of around £22 million in total over the course of the year.

A large chunk of this – around £7 million – was imposed against the Alliance and Leicester after the lender was found to have been mis-selling Payment Protection Insurance, which is an area where the FSA has really been trying to clamp down over the past year or two following worrying evidence of mis-selling amongst lenders and providers.

A number of other firms have also been fined huge amounts of money, including Beneficial Finance, trading as HFC, GE Finance, and Egg, amongst others. Many workers in the industry, such as mortgage brokers, have also been fined and even banned by the FSA over the course of the year for failing to follow regulations.

One official from the FSA said that the watchdog would no longer stand for companies that would not adhere to regulations. He stated: “The FSA will not tolerate firms which fail to understand and comply with our rules.”