Six-year ban for claims boss who misled customers
THE boss of a claims management company has been disqualified from acting as a company director for six years after causing the firm to trade in breach of its statutory obligaqtions.
Kevin Rogers-Davison, a “de-facto” director of Manchester’s Delete (UK) Ltd, failed to get the company to operate in a clear, transparent and fair way and misled customers.
An investigation by the Insolvency Service discovered that the 35-year-old, who lives in Altrincham, had acted in the management of Delete while not appointed as a director.
Rogers-Davison has given an undertaking to the Secretary of State for Business Innovation and Skills, Vince Cable, not to be involved in the management of a company in any way for six years from December 5 2014 without leave of the court.
Delete was formed in May 2007 and operated as a claims management company regulated by the Ministry of Justice.
On December 1 2010, the Ministry of Justice suspended Delete’s licence to trade as a result of its misleading practices. The company was placed into voluntary liquidation on December 16 2010.
Delete UK “cold called” customers and in return for a fee offered to “wipe out” their credit card debts if it was discovered that the initial credit agreements had not been implemented correctly.
The company promised that their fees would be refunded if the original credit agreement was deemed to be correct. The company failed to provide adequate refunds for unsatisfied customers, failed to assist with additional contact with the credit companies as it had previously promised and failed to ensure that the whole claim process took less than 60 days as promised in its sale literature.
It also failed to provide clear documentation to customers to make them aware which company they were dealing with which prevented many customers from applying correctly for a refund.
As a result of the breaches, members of the public paid Delete UK for a service which many of them did not understand. Customers of the company have claimed in the liquidation for a total of £28,847 and the Insolvency Service is aware of a further £73,488 outstanding to dissatisfied customers who took the decision not to claim in the liquidation.
Sue McLeod, a chief investigator with the Insolvency Service said: “This is a case in which the director’s actions caused considerable losses and hardship for vulnerable members of the public.
“This disqualification should serve as a reminder to others tempted to operate in a misleading way that the Insolvency Service will rigorously pursue enforcement action and seek to remove them from the market place to protect the public for a lengthy period.”
