The Insolvency Service is perhaps known most widely for its actions on insolvent firms, which must be wound up due to a lack of financial stability.
However, it also takes action to wind up companies for other reasons – and two dodgy debt management companies inCheshireare among those to fall foul of the Insolvency Service’s sanctions.
Wilmslow-based Debt Help Direct Ltd and Money Worries Ltd, which should not be confused with similarly named companies elsewhere in the country, were both found to have acted inappropriately while ostensibly trying to get their clients back into the black.
Both apparently took money from their clients as payment towards their debts, but did not then pass that money on to their creditors as intended.
Alex Deane, investigation supervisor at the Insolvency Service, said: “These companies targets individuals who were already in severe financial difficulties and the ‘services’ provided by these companies simply made matters much worse.
“They claimed to offer a service, and failed to deliver.”
Both companies were wound up in the High Court on June 3rd on the grounds of public interest.
The Insolvency Service is now working towards a ‘debt management plan protocol’ designed to protect paying customers of debt management firms and ensure that they receive appropriate advice and assistance when managing their debts.