Would you be convinced?
We have been appointed in a recent liquidation and one of the creditors brought this to our attention.
After a cold call discussion, they received the below email:
Email Extract sent to Creditor following a brief 5 minute call
This email is to confirm that after our telephone conversation today regarding the liquidation of XXXXXX Ltd you are listed as a creditor being owed £XXXXXXXX, If this figure is incorrect as mentioned or you have paid any other legal costs relating to this debt then please forward any invoices or proof of debt, this will entitle us to claim back your debt, costs, late payment interest and any other compensation you are entitled to.
As I explained the situation regarding the liquidation of XXXXXXXXXXX Limited and what the director Mr XXXXXXXXXX breached as a director of the limited company, both the insolvency act as well as company house rule, this director also breached his fiduciary duty as officers of the limited entity, this allows us to bring a claim against the director in question, giving us the recourse to pursue and collect commercial debt due to breaches of the insolvency act.
As I previously explained, we carried out extensive investigations into the trading of XXXXX Limited and its director after reports came in of wrongful and fraudulent trading from another creditor who cannot be named for legal reasons.
We carried out land registry and wealth status checks on the director Mr XXXXXXXX and can confirm that if this case remains a civil matter and the director agrees to pay our clients debts with the funds they received from clients paying them for works carried out by the creditors of XXXXXXXX Limited, then all evidence will be passed to the over director once payment submissions have been processed, If the director choose to ignore our demands for payment then we will be left with no alternative but to involve HMRC and notify them of the misconduct and fraudulent activity, with this in mind the director still has enough personal assets to pay HMRC and our clients debts, however this is a long drawn out process and we anticipate they will not want HMRC involved and will come to some form of agreement.
As I explained regarding our costings, as outlined in our terms and conditions of service XXXXXXXX Limited applies a late payment charge of 17.5% commission and this is charged to your debtor under late payment of commercial debt regulations, the cost as outlined in our terms and conditions of service is to cover all costs relating to the collection of your debt, the cost to your company if you wish to instruct us will be £660.00 plus VAT as explained on our call, this is an upfront payment to cover costs and enable us to work on your companies behalf, this cost will also be added to your debt and recovered.
We will be sending out the letter to your debtor in tonight’s postal run at 5pm and will notify you of who signs for the letter at some point tomorrow, we will then keep you updated with our progress going forward, also if you want your companies name to remain anonymous it can be as mentioned.
I am aware that the R3 Technical Team has recently circulated an alert and reported companies such as these as a cause for concern to the Investigation and Enforcement Services Team at the Insolvency Service.
Our creditor in this matter said, “My thoughts are these guys are ambulance chasers who have taken basic info from Co House – an initial fee of £660 + vat per creditor smells like a scam.”
Clearly, if there are claims against the director personally, they should come into the Liquidation estate for the benefit of all creditors. A third-party debt collector has no authority or power to bring claims against a director unless a Personal Guarantee is in place – only the Liquidator can pursue wrongful trading etc.
There are a few firms like this that pull off the Statement of Affairs from Company House and mailshot creditors promising recoveries where a Liquidator cannot.
Interestingly: –
Global Investigations and Recoveries Limited was wound up in the public interest in the High Court on 17 May 2021 before DDJ Watkin. The Official Receiver has been appointed liquidator of the company. During the proceedings, the court heard that Global Investigations and Recoveries was incorporated in April 2019, with registered offices in Nottingham. The company contacted businesses who were creditors of insolvent companies, offering that it could recover debts from the director directly and outside of statutory liquidation proceedings.
Global Investigations and Recoveries, however, came to the attention of the Insolvency Service after receiving complaints that the company was operating contrary to insolvency legislation. Following confidential enquiries, investigators established several instances of misconduct caused by Global Investigations and Recoveries. The rogue debt collectors used a bank account not in its own name and engaged in misleading sales practices with no apparent commercial benefit to customers, while also failing to maintain a registered office, which is prejudicial to creditors or customers of the company.
Global Investigations and Recoveries failed to co-operate with the Insolvency Service’s enquiries and did not deliver any accounting or trading records. This has meant investigators could not establish the full extent of harm caused by Global Investigations and Recoveries. It is understood, however, that one potential victim was quoted £4,000 to engage with Global Investigations and Recoveries’ debt collection services. The court wound up Global Investigations and Recoveries on the grounds that it traded with a lack of transparency and commercial probity.
Global Investigations and Recoveries acted contrary to insolvency law and unscrupulously targeted creditors, who only wanted to secure their returns.
The aim of Lucas Ross – Creditor Services Department is to offer a bespoke and personal service to you as a client. Insolvency proceedings are established in law and liquidators are responsible for recovering returns to creditors.
We have a demonstrable track record of investigating companies and their directors and returning funds to creditors.
If you are sent Insolvency paperwork and do not understand it, we offer free, no obligation consultations, so do not hesitate to contact us at help@lucasross.co.uk
