‘Excessive’ directors’ firms wound up

A GROUP of Stockport companies offering debt management and loan brokerage services to people struggling with their debts have been shut down in the High Court following an investigation by the Insolvency Service.

Carter & Carter Financial (Management), theloansupermarket.co.uk, Easysteploans (UK) and TLG Loans were wound-up in the public interest.

A fifth company, Carter & Carter Financial, which also formed part of the investigation, was wound-up separately on a creditor’s petition.

The Insolvency Service said their investigation revealed “financial excess” on the part of the company directors, Irfan, Zeeshan and Noman Nasrullah, who made substantial cash withdrawals, leased a number of expensive cars and bought Rolex watches which were given to family members.

Their companies offered to manage clients’ debts and arrange payment plans but in many cases the money was collected and not passed on to creditors. They also sold loan broking services but few loans were arranged and clients were charged unauthorised brokerage fees

Of some 10,000 applications made to one master broker approached by the companies, only 71 successfully resulted in a loan being made to the client.

Colin Cronin of the Insolvency Service’s Company Investigations said: “Companies using deliberately misleading offers for financial gain is serious misconduct and it undermines the confidence the public have in business. I hope the action taken against these financial companies sends a clear and simple message: if you set out to rip off your clients you will be closed down.”