PPI firm shut down over mis-selling
Redress Financial Management Limited, a Bradford-based Payment Protection Insurance (PPI) claims management company, has been wound up by the High Court for misusing clients funds.
The winding up follows an investigation by the Insolvency Service.
The company, trading under the name “Redress Claims”, charged customers an up-front fee of between £95 and £395 plus a percentage of the fee recovered, for PPI services, mis-sold credit card claims, mis-sold mortgage claims and Unenforceable Credit Agreements (UCA).
The Insolvency Service investigated the company, following information from the Ministry of Justice and found many examples of misconduct by the company including misusing client funds, taking unauthorised payments from clients, failing to operate a proper complaints procedure to the detriment of its customers and failing to file statutory accounts and returns.
Commenting on the case, Alex Deane, an Investigation Supervisor with the Insolvency Service, said,
This company operated with flagrant disregard for the rules governing claims management services and proper financial controls. The investigation and subsequent legal action taken by the Service were long and complex and I would like to thank officials from the Ministry of Justice for their assistance in bringing the company’s activities to an end.
Those responsible for such companies should be aware that the Insolvency Service can and will take firm action against companies which operate in this manner.
Notes to Editors
Redress Financial Management Limited (“Redress”) was incorporated on 8 May 2007. The registered office is Unit 3, the Courtyard, Mid Point, Thornbury, Bradford, West Yorks, BD3 7AY. The sole director of Redress is Naman Ahmed Hussein
The petition to wind-up Redress Financial Management Limited was presented under s124A of the Insolvency Act 1986 on 7 October 2013. The company was wound-up on 19 November 2014.
Company Investigations, part of the Insolvency Service, uses powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK on behalf of the Secretary of State for Business, Innovation & Skills (BIS). Further information about live company investigations is available.
The Insolvency Service also administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice. Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
By virtue of the winding up order all public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email: email@example.com.
Published: 21 November 2014
From: The Insolvency Service