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CCR Magazine - Group of Cheshire based companies shut down after Insolvency Service investigation

A group of Cheshire-based companies offering debt management and loan brokerage services to financially distressed clients have been wound-up in the High Court following an investigation by Company Investigations of the Insolvency Service.

Carter & Carter Financial (Management) Limited, theloansupermarket.co.uk Limited, Easysteploans (UK) Limited and T.L.G Loans Limited were wound up on the grounds that their businesses served to operate against the public interest. Carter & Carter Financial Limited, which also formed part of the investigation, was wound-up separately on a creditor’s petition.

Initially a debt management service was offered by the companies whereby they established how much disposable income a client had available to meet claims by creditors and a payment plan was agreed with those creditors on behalf of the client. Regular payments were collected from clients for onward payment to creditors after the deduction of fees. However, the investigation found numerous complaints that monies had been collected from clients, but not paid over to creditors. The debt management business was found to have operated in breach of Office of Fair Trading guidelines aimed at protecting consumers.

Subsequently the companies moved into loan brokerage, representing that they would source loan finance on behalf of clients. Clients were recruited through advertising and when they contacted the companies they were asked to provide credit/debit card details, purportedly for an ‘identity verification check’. However, no system was in place by which a client was credit-checked or otherwise assessed during the course of the call. Instead the process was found to be a device to obtain a client’s card details in order to charge unauthorised brokerage fees. In addition, clients were misled as to the likelihood of obtaining a loan. Of some 10,000 applications made to one master broker approached by the companies, only 71 had successfully resulted in a loan being made to the client.

In addition to debt management and loan brokerage clients not receiving the services they had paid for, the investigation also revealed financial excess on the part of the company directors who made substantial cash withdrawals, leased a number of prestige cars and purchased Rolex watches which were passed to family members.

Commenting on the case Colin Cronin of The Insolvency Services, Company Investigations said; "Companies using deliberately misleading offers for financial gain is serious misconduct and it undermines the confidence the public have in business. I hope the action taken against these financial companies sends a clear and simple message; if you set out to rip off your clients you will be closed down.

“This action should also serve as an important reminder to anyone seeking the services of a debt management or loan brokerage company, always check the validity of any company asking for your personal banking details and quickly inform your financial provider if you notice any subsequent unusual activity.”

Delroy Corinaldi of the Consumer Credit Counselling Service (CCCS) said; “Offering to help desperate people to repay their debts and pocketing the money is despicable and the Insolvency Service has done well to get these companies shut down. Unfortunately they are not the first and they will not be the last to prey on the vulnerable and I would urge those with debt problems to look to the charitable sector for help."

(Source - Insolvency Service Press Release)

check this out, hope it helps:

CCR Magazine - Group of Cheshire based companies shut down after Insolvency Service investigation

A group of Cheshire-based companies offering debt management and loan brokerage services to financially distressed clients have been wound-up in the High Court following an investigation by Company Investigations of the Insolvency Service.

Carter & Carter Financial (Management) Limited, theloansupermarket.co.uk Limited, Easysteploans (UK) Limited and T.L.G Loans Limited were wound up on the grounds that their businesses served to operate against the public interest. Carter & Carter Financial Limited, which also formed part of the investigation, was wound-up separately on a creditor’s petition.

Initially a debt management service was offered by the companies whereby they established how much disposable income a client had available to meet claims by creditors and a payment plan was agreed with those creditors on behalf of the client. Regular payments were collected from clients for onward payment to creditors after the deduction of fees. However, the investigation found numerous complaints that monies had been collected from clients, but not paid over to creditors. The debt management business was found to have operated in breach of Office of Fair Trading guidelines aimed at protecting consumers.

Subsequently the companies moved into loan brokerage, representing that they would source loan finance on behalf of clients. Clients were recruited through advertising and when they contacted the companies they were asked to provide credit/debit card details, purportedly for an ‘identity verification check’. However, no system was in place by which a client was credit-checked or otherwise assessed during the course of the call. Instead the process was found to be a device to obtain a client’s card details in order to charge unauthorised brokerage fees. In addition, clients were misled as to the likelihood of obtaining a loan. Of some 10,000 applications made to one master broker approached by the companies, only 71 had successfully resulted in a loan being made to the client.

In addition to debt management and loan brokerage clients not receiving the services they had paid for, the investigation also revealed financial excess on the part of the company directors who made substantial cash withdrawals, leased a number of prestige cars and purchased Rolex watches which were passed to family members.

Commenting on the case Colin Cronin of The Insolvency Services, Company Investigations said; "Companies using deliberately misleading offers for financial gain is serious misconduct and it undermines the confidence the public have in business. I hope the action taken against these financial companies sends a clear and simple message; if you set out to rip off your clients you will be closed down.

“This action should also serve as an important reminder to anyone seeking the services of a debt management or loan brokerage company, always check the validity of any company asking for your personal banking details and quickly inform your financial provider if you notice any subsequent unusual activity.”

Delroy Corinaldi of the Consumer Credit Counselling Service (CCCS) said; “Offering to help desperate people to repay their debts and pocketing the money is despicable and the Insolvency Service has done well to get these companies shut down. Unfortunately they are not the first and they will not be the last to prey on the vulnerable and I would urge those with debt problems to look to the charitable sector for help."

(Source - Insolvency Service Press Release)

spacemonkeypg, I noticed you mentioned earlier that you thought DCAs generally work on a 'client's behalf' - if I'm misquoting I'm sorry but, you seem a bit confused as to what the Debt Collection 'Industry' is.

I suggest you have a read of the CSA's own factsheet: 'Debt Sale and Purchase'.

The link's on this page, here (it's a PDF).

Oh that's good news BB!!

Welcome back sweetheart! xxx

Thanks DG I've just been reading about Babybear - didn't even know she was so ill.

I'm not very good at keeping up with things, and don't come around the Bear Garden usually, as I'm not good at generally chatting. (huge understatement!!) I'm struggling to keep up with life, wish I could hide away from it most of the time.

Irony is, I used to light a cigarette before I left the house - I suppose it always gave me confidence. Trashed my health, devastated our finances, but it was something I'd depended on for well over thirty years. We've got box files full of letters collected over the last three years - from banks/DCAs - so many I swear they've taken over our house... When I open them the smell of stale fags hits me - I was chain-smoking all the time. But even now I don't dislike cigarettes. Something about them - maybe it's an addiction you never really get over.

Visiting Mum in hospital last year, so many people standing outside the main entrance having a smoke. Part of me knows it's madness, another part thinks I'd like a fag - right NOW (as in right then, after visiting Mum), another part thinks I couldn't have sat with Mum in hospital as long as I did if I'd still been smoking.

BB, I've just seen this

Please get yourself better sweetheart. We're all thinking of you xxxxx

Okay, here goes:

Mum was diagnosed with a very serious illness last year. She's now had 3 courses of chemotherapy and is a lot better than last year. I don't dare say much about it, because none of us know what might happen - except we (family) do - but maybe not, so I can't talk about it. I daren't. I'm not being deliberately mysterious, it's just that we're living on hope.

She's had brilliant care and support. She was admitted to hospital last year and everything was suddenly very final - they pulled her through and she's battled, so she's still here! I could just weep with the stress of it. Every day.

People keep saying to her "You've kept all your hair!" How is anyone supposed to react to that? She's kept her hair and her heart and her spirit.

I'm reaching the point where I'm too tired to fight DCAs anymore. Part of the fight is to read, understand and use the knowledge that everyone here shares, but I'm all done in. I can't read much before I get a migraine. I don't think I make much sense sometimes. I can't see very well. My mood is swinging wildly. I'm menopausal and keep forgetting to take tablets - including HRT and antidepressants.

I have to keep well for the people I love.

I gave up smoking last April!! I still can't believe I finally quit. I think I'm addicted to the nicotine gum though.

So, that's it. I suppose it should be in the Effects of Debt on Health and Lifestyle Forum - but I'm more concerned about my Mum, and Mum isn't a lifestyle effect - she's Mum.

I'm writing this so if anyone wonders why I'm not posting very much... this is why.

Huge respect Dave

Me too!!

Re: "Downturn hits the credit industry..."

It's sad, so

terrible, awful sad...

...

...

Now,

Who's got the PARTY balloons! :p:p

noogie, I've been dealing with this stuff head-on for over 3 years now. I get confused. I panic. There's a lot of stuff in my life I can't share. Dealing with DCAs is scary. Share if you can, it helps xx

SpeckledHen, look at this thread:

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/68114-ruthbridge-ltd-hillesden-securities.html

hope it helps xx

Bloomin heck Sosumi that was quick. I don't think the ink could have been dry on that post of mine yet.

:D1st Credit and the OFT are one of my hobbies!

Isn't it interesting to think that the former Directors/Executives of the banks who sc**ewed this country up are probably the only people who have perfect credit ratings?

Ooo don't get me started on CRAs!!

See Lookingforinfo's post here:

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/240353-1st-credits-interpretation-enforcement.html#post2677030

DLC are chancers of the highest order. I wouldn't send them a 'bemused' letter - you want legal proof of their right to collect a debt which they claim is yours. Do not give them an inch. CCA and one pound postal order.

Go for it MW!!

DLC ARE HILLESDEN!

DLC love to refer to Hillesden, and Hillesden love to pretend to be acting for 'originating' banks.

They sent me a very similar letter 3 years ago. It disturbed me to the point that I wrote directly to the Land Registry for further info. The Land Registry wrote back to say that they had no formal recorded search, but anyone can pay a few pounds to search a property with the Land Registry - that was the case then.

This is head-monster territory. They are messing with your mind. If they scare you enough you'll phone them.

WHY IS WHY YOU MUSTN'T PHONE THEM - ever.

CCA request them directly, by Special Delivery IMO.

454 as of now!

454 now!!

bump!!!

Downing Street Petition here:

Petition to: Regulate the UK's Credit Reference Agencies. | Number10.gov.uk

We ask the Govt to regulate credit reference agencies (CRA's) in the UK. CRAs have cartel power, and unfairly prevent a large tranche of potential borrowers from obtaining credit, removing their spending power from the economy.While the credit crunch was in part caused by careless sub-prime lending in the USA,The UK CRAs often hold innacurate and unfair information on borrowers. Innacurate because lenders register info unregulated , often innacurately, someimes maliciously and always without arbitration/third party assessment ..Unfair because the emphasis is only on past credit history and the Public have to jump through hoops to explain past problems.This takes millions of UK consumers out of the loop. Nothing is recorded about current changes future prospects etc ..Banks choose how they use the information concerned, but information needs to be more accurate and fair. The EU have plans to regulate the CRA's via IOSCO but UK regulation is required to give teeth to the EU initiative.

We ask the Govt to regulate credit reference agencies (CRA's) in the UK. CRAs have cartel power, and unfairly prevent a large tranche of potential borrowers from obtaining credit, removing their spending power from the economy.While the credit crunch was in part caused by careless sub-prime lending in the USA,The UK CRAs often hold innacurate and unfair information on borrowers. Innacurate because lenders register info unregulated , often innacurately, someimes maliciously and always without arbitration/third party assessment ..Unfair because the emphasis is only on past credit history and the Public have to jump through hoops to explain past problems.This takes millions of UK consumers out of the loop. Nothing is recorded about current changes future prospects etc ..Banks choose how they use the information concerned, but information needs to be more accurate and fair. The EU have plans to regulate the CRA's via IOSCO but UK regulation is required to give teeth to the EU initiative.

bumpity bumpity bump!!

http://petitions.number10.gov.uk/experian-equifax/

BBC News here:

Banks win partial High Court victory on credit cards

Just been something on You and Yours about it - should be available with 'Listen Again' later. Wasn't listening - doing something else!