Manchester Tech Firms Closed Over Direct Debit Scam
Consumers appeared to be signed up for monthly payments without their consent
Concerns were raised that tech companies Affinity Technology Solutions Limited and RCSR Tech Limited were operating a direct debit scam
Monthly payments of around £30 were made without customers’ knowledge or permission, complainants said
Both companies have now been shut down in court following investigations by the Insolvency Service
Two connected tech companies which claimed to protect people online and enhance their social media image have been shut down following concerns they were running a direct debit scam.
Manchester-based companies Affinity Technology Solutions Limited and RCSR Tech Limited were both wound-up at the High Court in Manchester on Tuesday 18 March.
Affinity claimed to offer a service called IDSafeGuard which protected their customers’ online identity.
RCSR claimed to provide a service called ReportCurve which it said boosted a person’s online and social media footprint, making them more attractive to would-be employers and improving their eligibility for financial products.
However, individuals reported that they had monthly subscription fees of around £29.99 removed from their bank accounts for services they had never subscribed to.
The unwanted subscription services appeared to have been set up as part of an online loan application through an affiliated marketing company’s website.
Complaints were also made that the two companies would not cancel the unwanted subscriptions or offer refunds to customers.
David Usher, Chief Investigator at the Insolvency Service, said:
Numerous complaints were made that Affinity and RCSR were tricking consumers into monthly subscriptions for products they did not want or were entirely unaware of.
Indeed, from our investigations, it is not clear that either company provided any of the services to their unwitting customers.
Both Affinity and RSCR completely failed to co-operate with our investigations, leaving us with no option but to take this robust action to stop the companies from trading in the future and protect the public from further financial harm.
Affinity and RCSR were incorporated within two days of each other in February 2020. Both were described on Companies House as providing business and domestic software development.
Insolvency Service investigations concluded that the companies were linked through the same controlling force who was not listed as the official director. The registered office for both companies was also the same address on Wilmslow Road in south Manchester.
Investigators contacted the official directors of both Affinity and RSCR as well as the individual believed to be in actual control of the companies. All of them failed to comply with the investigation.
Both companies also failed to file accounts at Companies House as they were required to do.
The Official Receiver has been appointed as liquidator of Affinity Technology Solutions Limited and RCSR Tech Limited.
All enquiries concerning the affairs of both companies should be made to the Official Receiver of the Public Interest Unit: 16th Floor, 1 Westfield Avenue, Stratford, London, E20 1HZ.
https://www.gov.uk/government/news/manchester-tech-companies-shut-down-for-suspected-monthly-direct-debit-scam