Debt Collection

Dutch Trial Shows Potential of Debt Recovery Expertise in Fraud Cases

A pilot scheme in the Netherlands which saw debt recovery specialists brought in to investigate online fraud cases resulted in half the victims getting at least some of their money back.

The trial focused on incidents where people had made a purchase online but never received the goods they paid for. Working with Dutch police, two debt collection organisations were asked to step in to track down the scammers and work on recovering funds.

In total, a quarter of the victims ended up getting all their money back, while another quarter received some of their money. In total, 87% of the fraudsters either paid back the money or went on to face police charges.

Rogue Directors Face Disqualification for Dissolving Companies to Avoid Debts

Directors found abusing company closure rules to worm their way out of paying creditors can now be disqualified from holding future positions.

In a welcome crackdown on debt avoidance, the government has extended the powers of the Insolvency Service so it can now investigate voluntary dissolution of companies. If directors are found to have shut down their business with the primary motive of wiping off debts, the Insolvency Service can now bring misconduct charges against them.

As well as being disqualified for up to 15 years, directors could be ordered to pay compensation to unpaid creditors.

Dissolution Loophole for Rogue Directors To Be Closed At Long Last

The government is set to take action to slam shut a loophole in insolvency rules frequently used by unscrupulous directors to escape investigation over failed companies.

Creditors have long complained that the Insolvency Service’s inability to open cases into dissolved companies has handed directors an opportunity to dodge accusations of malpractice.

What’s in a Company Name? More Than You Might Have Bargained For…

When it comes to flexing its censorious muscles over what you can and cannot register as a company name in the UK, it appears that Companies House may have fallen behind the times.

The executive agency in charge of incorporating and dissolving registered commercial entities has long been known as a bastion of decorum and decency. Every year, the government body rejects a few dozen applications to set up companies on the grounds that the requested names are potentially offensive.