Inter Defence Security Limited, a Manchester-based company which used misleading and objectionable sales practices to induce customers to purchase monitored alarm systems, has been wound up in the High Court following an investigation by the Insolvency Service.
The investigation found that the company generated 595, 301 from sales in the first nine months of trading.
Commenting on the case, Colin Cronin, Investigation Supervisor said,
Inter Defence Security Limited made a number of serious misrepresentations when selling its alarm systems to customers. It was of particular concern to the court that many of the companys customers were elderly and believed that they had bought a system which provided for rapid response by the Police and Fire Service.
The Insolvency Service will take firm action against companies which mislead the public in this way.
The investigation found that in its advertising, the company falsely implied that its alarm system was approved by the Association of Chief Police Officers (ACPO); falsely stated that the alarm system was free when, in reality, customers had to enter into lengthy monitoring contracts, paying amounts of up to 5,695; and falsely implied that the alarm system covered rapid response by the emergency services.
The investigation also found that, in many instances, alarm systems were installed prior to the expiry of the statutory cooling-off period to which customers are entitled when entering into contracts in their own homes.