Debt management company director banned in UK
OREANDA-NEWS. December 24, 2015. 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.
The Insolvency Service’s investigations found that persistent complaints were made by customers between 2010 and 2013 about MLG’s 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.
Notes to editors
Marketing And Lead Generation Ltd (CRO No. 05854544) was incorporated on 22 June 2006. It was originally called Neo Media Solutions Limited and changed its name to its current form on 2 April 2013.
The company latterly traded from Pioneer House, Birmingham Street, Halesowen B63 3HN. The company provided debt management services from 2009 to 2013 under the trading name One Debt Solution. The company also used the trading name Neo Media Solutions from 2006 to 2013, as a provider of business to business sales leads, and the name NM Claims from 2010 to 2013, as a claims management service provider.
Andrew Alan Dunn was a recorded director from 7 April 2008 to 30 April 2009, and again from 1 March 2012 onwards. Although Mr Dunn is recorded as having resigned as a director on 30 April 2009 and having been reappointed on 1 March 2012, he acted as director of the company from 01 June 2009 onwards.
The company went into creditors’ voluntary liquidation on 9 December 2013. Its assets totalled £15,477 and its liabilities totalled £1,026,457.
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations.
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.
Further information on director disqualifications and restrictions is available.
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