Mortgage broker Adam Lucas is suing the FSA for up to £1.6m over the regulator publishing a decision notice cancelling his permission to operate as a broker.
The FSA issued the final notice last year after Lucas, of People Loans, failed to pay £1,350 in fees.
It issued a decision notice on February 2, 2010, notifying Lucas it had decided to cancel his permission.
Lucas did not refer the matter to the Financial Services and Markets Tribunal within the 28-day limit, so the FSA cancelled his permission on March 8.
According to the Telegraph, Lucas contends that the FSA did not attempt to contact him through “the usual channels” and claims he was out of the country in the run-up to the notice being issued. He says he was unable to accept a job offer when he returned to the UK as he had lost his approved regulatory status.
Lucas is suing the FSA for loss of earnings and damage to reputation.
The FSA confirms Lucas has issued legal proceedings against the regulator.