Three claims management company (CMC) directors have been banned from holding directorships after having taken money from customers seeking Payment Protection Insurance (PPI) compensation and not pursuing their claims.
Insolvency News has reported that Christopher Mills, Paul Young and Mark Taylor had allowed other people to operate the three connected companies registered in their names which were called McGregor-Moore & Co Limited, Bradley-Turner & Co Limited, and Bridgewater Claims Management Limited.
The Insolvency Service discovered that customers deposited over £1.3m between 17 October 2008 and 15 January 2010 with the three companies. 179 of those customers lodged complaints for having received little or no service. The companies were wound up in June 2011.
Mills and Young have been disqualified from being directors for eight years, while Taylor has been told that he faces a nine year ban.
Ken Beasley, official receiver at The Insolvency Service said that the three companies had set out to "rip off the public", according to Insolvency News.
“The directors’ decisions to front these companies facilitated others in operating them in a manner which lacked commercial probity. They took money customers who were already in debt by obtaining deposits without any intention of supplying the service required,” he said.