Noyan Nihat, the director of two financial firms with the Financial Conduct Authority’s (FCA) approval, is now under scrutiny after being linked to two companies fined a total of £340,000 for making over 1.43 million nuisance calls to elderly and vulnerable victims. The two companies, Outsource Strategies Limited and Dr Telemarketing Limited, were investigated by the Information Commissioner’s Office (ICO) after complaints emerged regarding aggressive sales tactics aimed at consumers who had opted into the Telephone Preference Service’s ‘do not call’ list.
The fines imposed on the firms were substantial: £240,000 for Outsource Strategies and £100,000 for Dr Telemarketing. The ICO’s investigation revealed that the companies had contacted vulnerable individuals with high-pressure sales pitches, attempting to persuade them to sign up for various products.
At the time of the violations, Noyan Nihat, a wealthy North London businessman, was the sole director of Outsource Strategies. He also served as one of the two directors at Dr Telemarketing alongside his business associate Wayne Phillips, who has since been banned from acting as a director of any UK company.
In addition to his role in these firms, Nihat is registered with the FCA as a director of Monark Global, an online jewellery business operating under the name Tru-Diamonds. The FCA registration also enables the company to act as a credit broker. Nihat is also the Chief Operating Officer of Privat 3 Money, an FCA-licensed electronic payment services firm, and holds a position on the Advisory Board of The Payments Association.
While the FCA has approved Nihat since 2018, the regulator’s records do not reflect the full extent of his controversial history. Nihat was also a director and joint owner of Mefinance Limited, an FCA-authorized firm that used telemarketing to sell insurance products. In 2013, the Mail on Sunday reported that Mefinance had misled customers, including one pensioner, who was promised a free trial of a consumer magazine but was charged £79 for a subscription she never received. Mefinance ultimately went into liquidation in 2015.
Nihat’s past also includes his involvement in Vitamail, a mail-order company that marketed health products with deceptive claims of large cash prizes. Despite these red flags, the FCA approved Nihat for a major role at Monark Global in 2018, prompting questions about the regulator’s decision to continue to endorse him.
The FCA did not respond to inquiries about whether they would reconsider Nihat’s approval in light of the fines imposed by the ICO. When contacted, Nihat declined to comment on the penalties or whether the FCA might take further action.
In another case, O2, a mobile service provider, faced criticism for charging a loyal customer, Ms. K.M., nearly £300 for leaving a contract. O2 initially sold her a contract with a new number, which didn’t fix the international call issues she faced. After intervention from Tony Hetherington at the Mail on Sunday, O2 apologized and allowed Ms. K.M. to switch providers without penalty, offering an additional £60 as a gesture of goodwill.
As the investigation into Nihat’s financial activities continues, his previous record raises serious concerns about his treatment of consumers, particularly vulnerable ones.
