Kevin Vincent McMonagle, the director of used car dealership Marshalls of Kilmarnock Limited has been disqualified for seven*years.

An Insolvency Service investigation found Mr McMonagle (48) had caused the company to trade in a manner which breached consumer protection legislation, causing a loss to customers in the region of ?95,000.

On 21 January 2016, Marshalls of Kilmarnock, with liabilities of ?544,309 was placed into compulsory liquidation following a winding up petition lodged by H M Revenue & Customs. Kevin McMonagle was the sole director of Marshalls of Kilmarnock Limited at that time.

Following the liquidator?s appointment, the investigation found that from 4 June 2014 onwards, Trading Standards received 36 complaints from customers which resulted in quantifiable losses to 17 customers of about ?95,000.

The complaints related to:

not paying or returning money owed to customers
selling motor vehicles which were not of satisfactory quality
omitting to transfer vehicles registration documents
failing to pay off finance agreements of customers trading in their vehicles

On 4 December 2014, officers from Trading Standards met with Mr McMonagle to discuss their concerns regarding the level of complaints against the company. Following further complaints, Trading Standards applied to the Court for an enforcement order after Mr McMonagle stopped co-operating with them during March 2015.

On 15 April 2015, Kilmarnock Sheriff Court issued an interim enforcement order to prevent continued breaches and protect customers following which Mr McMonagle surrendered his licence to sell second hand cars on 28 April 2015. This caused the company to cease trading.

The undertaking that Mr McMonagle has now given to the Secretary of State for Business, Energy and Industrial Strategy means he will not able to act as a director of a company for seven years from 26 June 2017.

Robert Clarke, Head of Company Investigation at the Insolvency Service said:

When directors of a company do not comply with legislation that is designed to protect customers, and avoidable losses result, the Insolvency Service will fully investigate the circumstances and take action where appropriate.

In this case, a significant number of customers have been left out of pocket thanks to Mr McMonagle?s disregard of protective legislation and it is appropriate that their disqualification is for a significant period of time.

This ban should serve as a reminder to any directors tempted to do the same: the Insolvency Service will vigorously investigate you and seek to remove you from the marketplace.