Company wound-up in the public interest after using hostile and misleading selling tactics…reports Asian Lite News
An Essex company which aggressively cold-called vulnerable people to sell drainage and electrical protection plans which had little or no real value, has been shut down.
Basildon-based Home Drainage Protection Service Ltd bombarded pensioners and people suffering from medical conditions with up to 20 calls a day, using abusive language and threatening to call the police or bailiffs if they did not sign up to their bogus protection plans.
The company claimed to provide replacements and repairs to plumbing and drainage as well as protection plans for items such as satellite equipment and household appliances.
Insolvency Service investigations found no evidence that such cover was ever provided to customers. Home Drainage Protection Service was wound-up at the High Court in London on Tuesday. Cheryl Lambert, Assistant Director of Operations at the Insolvency Service, said, “We received numerous reports that Home Drainage Protection Service was consistently pressurising vulnerable members of the public, issuing so-called ‘protection certificates’ for household appliances. Their calls were designed to be deliberately intimidating, with the callers swearing, demanding payment from those who were unfortunate enough to pick up the phone, and threatening to send the bailiffs or police to their address. The judge said that the sales techniques used were beyond aggressive, and that they were frightening to people.”
“We also found hardly any evidence that the company was selling the protection cover it attempted to force on people. Indeed, the company appeared to be a front for the transfer of millions of pounds of funds through different bank accounts.”
The Insolvency Service takes its responsibilities to protect the public from harm and financial wrongdoing extremely seriously which is why we conducted a thorough investigation into the company, resulting in a court order stopping them from trading.
Investigations into Home Drainage Protection Service began in April this year after complaints had been made to the agency, the police and Citizens Advice.
The Insolvency Service investigated 57 complaints which showed more than £11,000 had been taken from people over a short, but highly distressing, period of time.
In addition to threatening victims with bailiffs, the police and taking them to court, the company also said money would be taken out of their accounts anyway and that they would incur additional costs as a result.
They also falsely claimed that consumers had previously taken out insurance with them when they had not. Investigators uncovered payments of more than £6.9 million from Home Drainage Protection Service to 42 companies between April 2021, one month after it was set up on Companies House, and June 2024.
The company failed to co-operate with the Insolvency Service’s investigation and did not provide an explanation for these payments. No evidence was found that Home Drainage Protection Service conducted any water collection, treatment, supply, or sewerage works as they claimed.
ALSO READ: Saltmarsh being restored in Devon
