Andrew Alan Dunn, director of failed debt management company Marketing And Lead Generation Limited (MLG), which traded as One Debt Solution offering debt management services to people suffering from financial problems, has been disqualified for misleading customers and for declaring a 330,000 dividend to shareholders when customers complaints were under review.
The disqualification follows an investigation by the Insolvency Service.
Mr Dunn (42) of Hagley, Stourbridge gave an undertaking to the Secretary of State for Business, Innovation & Skills, which prevents him from acting as a director of a company for 11 years from 10 December 2015.
The Insolvency Services investigations found that persistent complaints were made by customers between 2010 and 2013 about MLGs failure to pay over money intended for their creditors, and that the independent adjudicator who reviewed the complaints decided that the customers had been misled and should receive refunds.
In February 2013, at a time when customers complaints were still under review, MLG declared a 330,000 dividend to its parent company, of which Mr Dunn was himself a shareholder. On 09 December 2013 MLG went into liquidation owing debts of over 450,000 to customers.
Commenting on the disqualifications, Susan Macleod, Chief Investigator at the Insolvency Service, said:
This company derived its income from people who were struggling financially and who had turned to it for help to sort out their debt problems. The director failed to pay due regard to the interests of these already vulnerable people and caused the company to carry on with misleading business practices despite persistent complaints and warnings.
This disqualification should serve as a warning that if directors behave in this way their conduct will be investigated and they will be removed from the business environment.