Misleading Debt Management Firms Shut Down In High Court

A number of Stockport based debt advice and loan brokerage companies, run by the same group of directors, have been shut down in the High Court after an investigation in to mismanagement of the firms by the Insolvency Service.

The companies, which included theloansupermarket.co.uk, Easysteploans (UK), Carter & Carter Financial and TLG Loans were wound-up on the basis that it was in the public interest.

The company directors, Irfan, Zeeshan and Noman Nasrullah were found to have purchased a number of substantial assets which were given to family members and to have made large cash withdrawals from the companies.

The companies, which advertised to managed debt-repayments on behalf of struggling consumers, were also found in many cases to keep the money they collected from clients rather than passing them on to creditors. The group was also found to have been charging clients unauthorised brokerage fees with few loans ever actually being made.

Colin Cronin of the Insolvency Service's Company Investigations said: "Companies using deliberately misleading offers for financial gain is serious misconduct and it undermines the confidence the public have in business. I hope the action taken against these financial companies sends a clear and simple message: if you set out to rip off your clients you will be closed down."