Swansea-based McCaskill & Morse launched in March 2012, offering a no-win-no-fee service for mis-sold payment protection insurance (PPI) and bank charges reclaims.
However, clients complained to the Ministry of Justice (MoJ) that McCaskill had failed to return upfront fees and paid refunds late following unsuccessful claims.
The MoJ warned McCaskill that it was engaging in unfair trading practices before the company was put into administration in November 2015 owing £93,700.
Subsequent Insolvency Service investigations confirmed many of the allegations and data revealed clients received their refunds between 180 and 380 days after the start of the claims process, more than double McCaskill’s 90-day contract terms.
McCaskill also failed to inform the Ministry of Justice about changes to its business model, including the charging of up-front fees which they had previously declared it did not intend to charge.
As a result, the Insolvency Service concluded that McCaskill had been engaging in unfair trading practices in breach of the Conduct of Authorised Persons Rules 2006 and 2013.
Clawback company failed to return money
The five directors are now banned from acting as a director of a company, cannot take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership, as well as being unable to be a receiver of a company’s property.
McCaskill traded from Suite 1, 4th Floor, Alexandra House, Alexandra Road, Swansea, SA1 5ED.
Timothy Chapple has been disqualified for eight years, Richard Adams for six years, Catherine Wood for five years, Gary Richards for five years and James Bell for four years.
Insolvency Service investigations group leader Robert Clarke noted: “It’s ironic that McCaskill, a company established to support consumers claw back money owed to them, consistently failed to return what was rightfully owed to its clients.
“The length of the bans should serve as a warning to other directors who may feel tempted to breach legislation intended to protect the public, that the Insolvency Service will seek lengthy periods of disqualification.
“I would also like to thank my colleagues at the Ministry of Justice and the Legal Ombudsman for their hard work and co-operation in achieving this outcome,” he added.
