Joseph Cummings, director of Bridging Loans, was guilty of “serious failures” relating to lending practices, the FSA concluded. His company was also fined £42,000.
Cummings’ handling of customer complaints was one of a number of failings singled out by the regulator. It said in an interview with the FSA, Cummings explained he considered some customers to be “evil” and based his decisions on the “character of the complainants”.
“Your conduct in this regard created a significant risk that complainants would not be treated fairly,” the FSA concluded.
The FSA has also banned three other directors at the company, all family members of Cummings, from being able to operate in senior positions within the financial services industry.
It said the trio – Miriam, Laura and Susan Cummings – were all approved persons holding significant influence functions at Bridging Loans when, in reality, they had had no meaningful involvement in the business. This resulted, it said, in customers being lent to irresponsibly and the unfair treatment of customers in arrears.
As an approved person, the FSA said Cummings failed to act appropriately when dealing with customers entering mortgage contracts.
It said he failed to lend responsibly, leading to a risk that customers would enter into contracts they could not afford.
He also 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.
Cummings refused to co operate with the FSA during the course of its investigation, including denying the FSA access to Bridging Loans’ office.
FSA director of financial crime, Margaret Cole, said: “Joseph Cummings showed total disregard for the interests of Bridging Loans’ customers, basing his decisions and subsequent treatment of a customer on whether or not he liked or trusted them, rather than on any proper assessment of their circumstances. This sort of behaviour towards customers cannot be tolerated.”
