Repossession Management Bureau Limited, RMB Assets Limited and OM Payments Limited, all based in Birmingham, which offered repossession and eviction advice services to the public have been wound up in the High Court for excessive fees and misleading claims, which targeted vulnerable clients.
The winding up follows an investigation by the Insolvency Service.
The investigation found that the companies, which traded under the style Repossession Management Bureau, had targeted and taken advantage of vulnerable members of the public desperate for a resolution of their housing concerns.
In particular, the companies made misleading and unfounded statements to clients and there was a lack of transparency regarding the excessive fees charged by the companies.
The companies generated the majority of their income by obtaining secured charges on clients properties. Clients were told the charge was to protect the clients equity should the property be repossessed by the mortgagee. In reality, the charge secured the excessive fees levied by the companies, who benefited when properties were repossessed and sold by third party mortgagees in possession.
Prior to the presentation of the petitions, the companies together held charges worth over 3 million.
It was also found that there was a lack of transparency regarding those involved in the companies management and operations. For the majority of the companies trading the sole director of each company was Daljit Kaur Dhillon, who used the alias of Kareena Kapoor when dealing with clients. Also involved in the operations of the Companies were Gurpreet Singh Chadda (who used the alias Raaj Singh) and John Paul Dowdeswell (who used the alias Paul Dowd).
In addition it was found that Repossession Management Bureau Limited maintained inadequate accounting records and failed to properly account for VAT.
Commenting on the case, Alex Deane, an Investigation Supervisor with the Insolvency Service, said:
These companies and the individuals behind them preyed on people in desperate financial straits. The Insolvency Service will continue to put a stop to companies which operate in this reprehensible manner.