FSA takes action against brokers

The UK’s financial regulator, the Financial Services Authority, has banned two brokers from the Ilford area after they were found to be falsifying information on applications for customers. The two brokers, Amjad Malik and Tahir Mahmood, were from Abbaci Associates in Ilford. They have now been banned by the FSA for providing false information on customer applications in order to get them the loans that they needed.

There have been concerns over brokers and lenders fudging information relating to customers’ personal and income details in order to get them the finance that they need for some time. The concern is that customers are getting loans based on the false income details that are being provided, and their real income is nowhere near enough to maintain the repayments on the loan.

With the global credit crunch having taken hold in the UK this is an issue that has become an even greater concern, and the FSA has been coming down hard on this found guilty of involvement in such actions.

One official from the FSA stated: “The actions of the these two partners posed a risk to lenders, and banning them supports the FSA’s financial crime objective as well as our consumer protection and market confidence objectives. It is part of a wider effort to tackle mortgage fraud, which includes working alongside other authorities such as the police, and acting on information received from lenders and whistleblowers.”

According to the report one of the brokers even claimed that a customer used to be employed by him, even though this was not the case. He also provided false payslips in order to secure finance for the customer.

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