The FSA has banned a Leicestershire-based broker for using high pressure sales techniques and selling subprime mortgages to customers with bad credit.
The FSA's investigation concluded Aaron Nickols, trading as Warwick Finance, was not fit and proper to run the mortgage and insurance business.
His sales tactics included making unsolicited phone calls to the public, falsely claiming to represent well-known high street financial service providers and questioning customers' existing policies to encourage new sales of Warwick Finance's products.
"You encouraged a high pressure sales environment by creating monthly targets which required sales staff to complete a certain number of sales each month," the FSA's Final Notice reads.
"Staff were penalised if they failed to reach these targets, creating a risk that customers may have either been sold or recommended an unsuitable mortgage product as a direct result of Warwick's staff being encouraged to reach these targets."
Some of these products, the FSA says, should not have been sold to customers who were treated unfairly.
"You offered sub-prime mortgages to customers with adverse credit, generating leads through online introducers and purchasing leads from third parties. You generated revenues from both fees and commission, charging a minimum fee of £3,595 for arranging a mortgage."
The regulator adds that Nickols also failed to monitor staff and provided them with inadequate training meaning that customer needs were not taken into account. He employed 30 staff in October 2008.
In addition, he also made false statements to the FSA during the course of its investigation and failed to carry out agreed improvements.
FSA head of retail enforcement Tom Spender says Nickols poses a risk to customers and the financial system.
"High pressure sales techniques and subterfuge have no place in a market that relies on honesty and integrity."
Warwick's turnover for the period ending 31 October 2007 was £1,165,279 and during the two year period between April 2005 and April 2007 it sold 703 regulated mortgage contracts.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected