A mortgage broker has been banned by the Financial Services Authority (FSA) for providing false information about his income to obtain a home loan.

On his mortgage application, the man indicated that his earnings were higher than the amount of income that was declared to HM Revenue & Customs.

However, he stated that the difference was made up though his winnings through gambling which were not subject to tax.

FSA enforcement director, Margaret Cole stated that the man’s “explanation about his income on his mortgage application was not acceptable. Nor was his blatant refusal to make his client files available for scrutiny by the FSA.”

Meanwhile, a couple have received compensation after being mislead to believe Payment Protection Insurance (PPI) was compulsory.

The couple were awarded £27,000 by the Financial Ombudsman Service after purchasing the insurance alongside a personal loan from First Plus.

First Plus was ordered to reimburse the money as it failed to inform the customers that the £25,000 PPI was optional. The firm also failed to advise the couple that they were able to shop around for a better deal.

One of the couple said: “We were worried sick about the debt and I am appalled by our experience of the financial services industry. The banks are desperate to throw money at you but then bamboozle you over the phone.”