How bogus firms can hijack your address (and there's nothing you can do about it)

Published 14th Jan 2010

Huge flaws in consumer protection have been exposed by a small businessman, who discovered a rogue claims handling firm hijacked his address.

Mike Rowe, owner of London beauty salon Mr B, has been bombarded with mail for a claims handling firm which uses his address in Fulham, West London, on its notepaper, contracts and website.

Yet, despite complaining to the Ministry of Justice, which regulates claims firms, Royal Mail, the police, trading standards, the Information Commissioner, credit reference firms and Consumer Direct, no one was able to stop the business from using his address.

It highlights a massive hole in the law that leaves consumers shockingly exposed should someone use their address.

It's not uncommon to get mail marked for another person at your home. This may be a mistake, but could equally be a fraudulent credit application with someone using your address.

The firm, The Money Expert Services - which also calls itself The Expert Money Services - which used Mr Rowe's address, has no legal connection with the location whatsoever.

It claims in advertising that it can have credit card and loan debts written off by using loopholes in the law, and charges consumers a fee of £495.

Mr Rowe has received customer contracts, confidential bank details and credit agreement copies. Had these details fallen into the wrong hands, the borrowers would have been at risk of fraud.

Mr Rowe, 60, who has run Mr B from the same address for 40 years, says: 'It's not just my reputation. I am concerned that I might get people calling round saying that I owe them money when I don't.'

'It doesn't say much for the system that there is nothing anyone can seem to do. Every place I rang gave the same response: I was told it wasn't their responsibility and no one could help. It's incredible that someone can claim to be based at my address and there is nothing I can do to stop it.'

The Royal Mail could not stop the post as it is duty bound to deliver mail to a registered address; the police had explained that Mr Rowe was not the victim of a crime, and the other bodies said that no personal data rights had been breached.

It is the Ministry of Justice's responsibility to regulate claims firms and it has struck off many in the past year.

But even when Money Mail told the Ministry of Justice about the false address problem, it initially failed to act. And more than six weeks later, the firm's website is still up and running.

We established that the firm was cold-calling consumers at home, asking if they had any credit card debts. Those who expressed an interest paid £495 over the phone for the firm to investigate their claim.

Based on the reference numbers printed on documents, we estimate it may have taken about £450,000.

Customers are given Mr Rowe's address as the place to which to send their paperwork and a contract, giving the firm the appearance of legitimacy.

The firm's website lists the Fulham address, an email address and a phone number. Money Mail has established that some customers had been given the address of a PO Box at Gatwick Airport. The address is also shared by a company that makes fake identity documents.

Even after taking the case, the Ministry of Justice's first sent a letter addressed to the proprietor of the rogue claims firm to Mr Rowe's address, threatening criminal action if the business was not stopped.

James Daley, editor of Which? Money, says: 'There seems to have been a failing in consumer protection here. You would expect the Ministry of Justice to act quickly to protect consumers. But this does not seem to have happened.'

A Ministry of Justice spokesperson, says: 'We will consult other agencies, including the Office of Fair Trading where appropriate, to help pursue rogue businesses.

'Often, that includes joint operations with the local trading standards and maybe the police. If a rogue business is identified, we take steps to get the internet service provider to take the website down.'

Money Mail has attempted to contact The Money Expert Services on a number of occasions using its listed email and phone number. It has failed to reply.

Source: ' Daily Mail '

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