Consumer bill will clip phoenix wings
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IP by Melanie Hammond
Rogue hauliers could soon find it harder to walk away from their debts and start up new companies, under proposals from the Consumers' Association.
It is calling for a new consumer hill in the forthcoming Queen's Speech to allow authorities to clamp down on directors who "play the system".
The report published last week focuses on phoenix" companies which go bust, leaving creditors thousands of pounds out of pocket, only to start new companies from the ashes. It describes setting up a new company as "easier than applying for a new driving licence.
The consumer bill would give new powers to trading standards officers to investigate and take action against such companies. The courts would also be able to ban persistent rogues more easily.
Helen Parker, editor of Which? magazine, says: "We also want to see Companies House carrying out more checks on company data and we think the Department of Trade and Industry should make more effort to promote its investigations. And when appropriate, we'd like to see trading standards officers able to name and shame rogue traders."
Last week saw a review by the Lord Chancellor which could make it easier for creditors to recover their money from collapsed firms (CM3-9 Aug); while last month a pilot scheme was launched by the Insolvency Service which could see rogue directors sued on a no-win/no-fee basis (CM27 July-2 Aug I.