Redress Financial Management Limited, a Bradford-based Payment Protection Insurance (PPI) claims management company, has been wound up by the High Court for misusing clients funds.
The winding up follows an investigation by the Insolvency Service.
The company, trading under the name Redress Claims, 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 (UCA).
The Insolvency Service investigated the company, following information from the Ministry of Justice and found many examples of misconduct by the company including misusing client funds, taking unauthorised payments from clients, failing to operate a proper complaints procedure to the detriment of its customers and failing to file statutory accounts and returns.
Commenting on the case, 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. The investigation and subsequent legal action taken by the Service were long and complex and I would like to thank officials from the Ministry of Justice for their assistance in bringing the companys activities to an end.
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.