Sunderland-based EDC Group NE Ltd, UK EDC Ltd and UK TCF Limited were found to have deceived small businesses by presenting themselves as established recovery agencies, despite being only recently incorporated.

Investigators said the companies fabricated decades of experience, invented dozens of testimonials and used misleading websites to lure victims into paying upfront fees.

Clients reported handing over instruction fees of between £350 and £750, only for the firms to become uncontactable. Phone lines were permanently engaged and no voicemail facilities were available. Meanwhile, money collected from debtors on behalf of clients was never returned.

An Insolvency Service investigation revealed at least £54,847 had been withheld from clients. Bank records also showed a pattern of improper spending, with almost £160,000 funnelled directly to the director of EDC Group NE, alongside further payments to individuals in the form of ‘salary, gifts and commissions’.

Mor