Daniel Stevens and his father, Tony Stevens, operating as London Property Investments (U.K) Limited (LPI) and NPI Holdings Limited, took huge fees to organise high interest and unaffordable bridging loans for consumers about to be evicted from their homes.
In some cases, the pair bought homes for less than their value from owners and then rented the properties back.
Neither Stevens or his father were authorised by the FCA to arrange mortgages or sale and rent back agreements.
The judge said these breaches were “exploitative of vulnerable individual consumers” and were undertaken “to obtain significant personal gain”.
As a result of the judgement, LPI are required to remove 22 restrictions registered against individual’s properties.
The restrictions forced individuals to pay exorbitant fees to LPI. And if they were not paid, the property could not be be sold or remortgaged.
In some cases, this trapped consumers into high interest bridging loans.
‘Taking advantage of those struggling’
Mark Steward, the FCA’s executive director of enforcement and market oversight, said: “These companies and individuals were not just providing financial services without proper authorisation, they were doing it to take advantage of people who were struggling and in vulnerable circumstances.
“Their actions cost consumers large amounts of money in fees, inflated loan interest and lost equity in their homes. This judgment will help bring financial relief to these consumers.”
In July 2020, the FCA obtained an interim injunction and a freezing order to stop LPI activities and freeze residential properties and other assets owned by Tony and Daniel Stevens and the two companies.
A later trial will consider remedies, including compensation for affected individuals. This trial will also hear evidence in respect of up to 88 further potentially affected individuals.
