Press Release Summary: The Thinc Group has been fined £900,000 by the Financial Services Authority for the failure of the company in its sub-prime business.
Press Release Body: The Thinc Group has been fined £900,000 by the Financial Services Authority for the failure of the company in its sub-prime business. Since it could have an undesirable impact on the clients, it was considered important to levy this fine on Thinc Group.
It has been seen and discovered that the Thinc Group has no evidence that it has provided appropriate sub-prime advice to the customers. Also, there has been seen an inadequacy in the compliance to the needs of the clients which may have led to problems for some of them.
It was found by the FSA that between the span of January 1, 2006 to September 30, 2007, the customers of the Thinc Group did not have warranted sub-prime mortgages. Also, while selling adverse deals to the clientele, the company did not regard the affordability factor. The company even provided letters to some of the clients so as to explain why the deals were mismatched and not the ones that had wanted.
"It is very important that firms are able to prove themselves to the FSA and this is what exactly has not been done in this case. The companies have to prove that they have been fair to the clients and are making sure that maximum is being done to provide them with fair service and most appropriate advice.", says Margaret Cole, director of enforcement at the Financial Services Authority. "With this fine, we intend to make it clear that we are determined to impose high charges if the companies fail in the retail market", she adds.
Thinc Group claims that it has shown complete cooperation with the FSA against the words of the regulator who says that the remedial action suggested has not been paid heed to. The situation is unaffected and the practices of the company in sales and follow-up have also not improved.
John Simmonds, the chief executive of Thinc, has shown regret on the drawbacks that are being seen in the company. He has pledged to continue a review of the company systems and management and ensure that these issues are dealt with. Also, an agreement has been made from the company that they better their services and in-house management of records so that the customers do not get any inappropriate advice. He adds, "The whole industry has a challenge to live up to when it comes to raising standards but Thinc is well placed to achieve this."
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2022
