In recent weeks the R3 Technical Team has seen a rise in members reporting that creditors of their respective appointments had been approached by companies claiming to have carried out extensive investigations into the trading of the insolvent company and its directors after “reports came in of wrongful and fraudulent trading from another creditor who cannot be named for legal reasons”. Furthermore, these type of companies then offer to collect the creditor’s debt for an upfront fee with no indication as to whether a return is likely to be paid to creditors.
The R3 Technical Team has reported these companies to the Investigation and Enforcement Services Team at the Insolvency Service as cause for concern.
If you do become aware of companies providing inappropriate or misleading advice to creditors, directors or anyone connected with your respective appointment, please report to Intelligence.Services@insolvency.gov.uk and copy in Ben Luxford (ben.luxford@r3.org.uk)
An example of the Insolvency Service taking action against these type of companies, please see their press release on 2 June 2021 here.