Second hand car dealer disqualified for not protecting customers
Imran Khadam, Director of Revolution Motors Limited, has been disqualified for seven years for breaches of consumer protection laws.
The investigation by the Insolvency Service, which led to Mr Khadam’s disqualification, found that the company was conducting its business in a manner that was to the detriment of, or not in the best interests of, its customers. It also discovered that he persistently breached consumer protection legislation, despite receiving advice from Trading Standards.
The investigation found that between August 2010 and July 2013, Revolution Motors misled customers by providing incorrect and insufficient information about vehicles prior to purchase. The company also omitted information and provided important information in an unclear, unintelligible or ambiguous manner, in breach of the consumer protection from Unfair Trading Regulations 2008. Additionally the company breached the Sale of Goods Act 1979 (as amended) by selling vehicles that were not as described, of satisfactory quality or fit for purpose and employed terms and conditions that breached the Unfair Terms in Consumer Contracts Regulations 1999 by attempting to exclude liability and restrict consumer’s legal rights.
Revolution Motors Limited failed to deal with complaints received from customers in accordance with the law and of the company’s liabilities of £198,780 at liquidation, £81,485 related to losses incurred by customers as a result of the company’s breaches of consumer protection legislation.
The disqualification, which commences onfrom 06 May 2016, prevents Mr Khadam from directly or indirectly becoming involved in the promotion, formation or management of a company for 7 years.
Commenting on the disqualification, Robert Clarke, Group Leader Insolvent Investigations North, said:
The Insolvency Service will not hesitate to take action against directors who fail to adhere to the standards required of them and to remove irresponsible and culpable directors from operating with the benefit of limited liability in the business environment.
Notes to editors
Mr Khadam’s date of birth is 22 April 1982 and he resides in Oldham.
Revolution Motors Limited (CRO No. 07012206) was incorporated on 08 September 2009 and latterly traded from 1-3 Garden Street, Off Bell Street, Oldham, OL1 3PY in the sale of used cars and light motor vehicles.
Mr Khadam was a director from 01 April 2010 until 25 July 2013. The Company went into Liquidation on 25 July 2013 with an estimated deficiency of £198,955.
The failure to provide proper information was in breach of the Consumer Protection from Unfair Trading Regulations 2008. The company also breached the Sale of Goods Act 1979 (as amended) by selling vehicles that were not as described, of satisfactory quality or fit for purpose and employed terms and conditions that breached the Unfair Terms in Consumer Contracts Regulations 1999 by attempting to exclude liability and restrict consumer’s legal rights.
On 15 April 2016, the Secretary of State accepted a Disqualification Undertaking from Imran Khadam, effective from 06 May 2016, for a period of 7 years.
The matters of unfitness, which Mr Khadam did not dispute in the Disqualification Undertaking, were that:
Between 19 August 2010 and 5 July 2013 he caused Revolution Motors Limited to conduct its business in a manner that was to the detriment of, or not in the best interest of, its customers and to persistently breach consumer protection legislation, or alternatively that he failed to exercise sufficient control over the business to ensure that it did not trade to the detriment of its customers and in breach of consumer protection legislation.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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Published: 18 May 2016
From: The Insolvency Service