Black Country debt director who misled clients disqualified

Andrew Alan Dunn, who was a director of failed debt management company Marketing And Lead Generation Limited (MLG), which traded as One Debt Solution, has been disqualified for misleading customers and for declaring a £330,000 dividend to shareholders when customers' complaints were under review.

His company offered debt management services to people suffering from financial problems.

Mr Dunn, aged 42 of Hagley, Stourbridge gave an undertaking to the Secretary of State for Business, Innovation & Skills, which prevents him from acting as a director of a company for 11 years from December 10.

The disqualification follows an investigation by the Insolvency Service and means that Mr Dunn can't act as a director of a company; take part – directly or indirectly – in the promotion, formation or management of a company or limited liability partnership; or finally be a receiver of a company's property.

In addition Mr Dunn cannot act as an insolvency practitioner and there are many other restrictions placed on disqualified directors by other regulations, according to the Insolvency Service.

Their investigations found that persistent complaints were made by customers between 2010 and 2013 about MLG's failure to pay over money intended for their creditors, and that the independent adjudicator who reviewed the complaints decided that the customers had been misled and should receive refunds.

In February 2013, at a time when customers' complaints were still under review, MLG declared a £330,000 dividend to its parent company, of which Mr Dunn was himself a shareholder.

On Monday December 9 2013 MLG went into voluntary liquidation owing debts of over £450,000 to customers. Its assets totalled £15,477 and its liabilities totalled £1,026,457.

Commenting on the disqualification, Susan Macleod, the chief investigator at the Insolvency Service, said that it should serve as a warning for directors that they will be disqualified if they behave in a similar way to Mr Dunn.

She said: "This company derived its income from people who were struggling financially and who had turned to it for help to sort out their debt problems.

"The director failed to pay due regard to the interests of these already vulnerable people and caused the company to carry on with misleading business practices despite persistent complaints and warnings.

"This disqualification should serve as a warning that if directors behave in this way their conduct will be investigated and they will be removed from the business environment."