Thinc Group has been hit by a fine from the financial watchdog over sales of sub-prime mortgage loans.
Sub-prime mortgage advisers Thinc Group has been hit with a £900,000 fine from the Financial Services Authority (FSA).
The watchdog decided on the heavy penalty due to the firm's poor record keeping when selling 775 sub-prime loans, collectively worth £77 million, to customers between January 2006 and September 2007. Thinc Group was also found by the watchdog to have performed inadequate background checks on customers.
Sub-prime loans, which are lent to people with poor credit histories, have proved controversial in recent times due to many borrowers proving to be unable to keep up with repayments.
Previous FSA research has suggested that a high proportion of sub-prime customers rely on mortgage brokers such as Thinc Group to make decisions on which loan to take out for them, leaving them more vulnerable to mis-selling.
Commenting on the case, director of enforcement at the FSA Margaret Cole said: "The level of fine shows that we are determined to impose higher fines for serious failings. Poor record keeping is a serious failing even where, as in this case, the FSA has not determined that the firm mis-sold sub-prime mortgages and there have been few complaints."
The FSA also said that it is currently reviewing Thinc Group's customers, in order to find out if any have suffered financially from the loans, the BBC reports.
