PPI firm wound up for misusing clients’ money

A BRADFORD PPI firm has been wound up by the High Court after an investigation found it had misused clients’ funds and had a “flagrant disregard for the rules”.

Redress Financial Management, based in Thornbury, traded as Redress Claims and 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.

An investigation by the Insolvency Service found the company had misused client funds, taken unauthorised payments from clients, failed to operate a proper complaints procedure to the detriment of its customers and failed to file statutory accounts and returns.

It had launched a “long and complex” investigation after receiving information from the Ministry of Justice.

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.

“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.”

Following the winding-up order, the company is now in the hands of the Official Receiver.