Delete UK Ltd, a company claiming to wipe out people’s credit card debts, has done a disappearing act of its own after being compulsory liquidated following the loss of its trading license.

Kevin Rogers-Davison, the 35 year-old ‘de-facto’ director of Delete UK Ltd, has been handed a six-year director disqualification for his part in managing the company. Mr Rogers-Davison cannot act as a director of a company or be involved in its management from 5 December 2014.

Delete UK was wound up after the Insolvency Service found the company had been trading in breach of the statutory obligations governing its operation by failing to operate in a clear, transparent and fair way.

Misleading trading practices

Formed in 2007, Delete UK Ltd operated as a claims management company, working under the Ministry of Justice’s regulatory regime. On 1 December 2010, Delete UK fell foul of the regulations imposed on the industry after employing misleading trading practices. As a result, its licence to trade in the claims management industry was suspended.

Following the suspension of the company’s licence, Delete UK Ltd was placed into voluntary liquidation on 16 December 2010.

Multiple failures to meet its commitments

Delete UK Ltd operated as a claims management company by ‘cold calling’ potential customers. In return for a fee, it promised to ‘wipe out’ individuals’ credit card debts if it was found the initial credit agreements had not been implemented properly. However, the company promised to reimburse all its customers if their original credit agreements were structured correctly.

The Insolvency Service investigation found that Delete UK was guilty of a string of failures, all in breach of industry regulations. Not only did it fail to provide adequate refunds for customers; it failed to assist customers by providing further contact with the credit companies as promised; and did not complete the process within 60 days, as stated by the company’s sales literature.

The last in a catalogue of failures was the lack of clear documentation to inform customers which claims management company they were dealing with. This prevented customers from properly applying for a refund.

Considerable losses for vulnerable members of the public

As a result of this litany of breaches, many members of the public paid upfront for a service they did not receive. When it came to applying for a refund, many were unable to do so. Those who were able to successfully contact the company did not receive the funds they were owed.

During the liquidation process, Delete UK’s customers, many of whom were vulnerable members of city, claimed for a total of £28,847. However, the Insolvency Service is aware of a further £73,488 owing to customers who decided not to pursue their claim.

Welcoming the disqualification, the Insolvency Service’s chief investigator, said: “This is a case in which the director’s actions caused considerable losses and hardship for vulnerable members of the public.

“This winding up and subsequent disqualification should serve as a reminder to others tempted to operate in a misleading way that the Insolvency Service will rigorously pursue enforcement action and seek to remove them from the market place to protect the public for a lengthy period”.

If you have been presented with a winding up petition or a threat of a winding up you should act quickly and call 08000 746 757 or use the live support box now.

Written by: Mike Smith