Speaking at the Mortgage Business Expo in London yesterday, director of small firms and contact centre Lesley Titcomb told intermediaries the FSA was on the look out for this kind of activity.
She said: “Our recent consultation paper on payment protection insurance brought the prospect of firms having to reassess past PPI complaints they have rejected and some think this could mean more firms try and become phoenix firms to leave these behind.
“I should warn them that we are alive to that threat.”
She added: “We are watching certain firms very closely and we are determined to remain one step ahead of potential phoenix firms and take strong action against firms and individuals that try this.”
In her speech Titcomb also warned brokers about referring clients to claims chasers, cautioning that without the appropriate permissions, such deals could put them in breach of data protection rules.
Titcomb also pointed out that mortgage market review proposals to require income verification on all mortgages are not intended to exclude all self-employed borrowers from the mortgage market.