"This company was a shark feasting in a pool of the most vulnerable and financially distressed."
The Insolvency Service found that the firm prompted members of the public to provide card details so that it could deduct a brokerage and/or membership fee without the customers’ knowledge.
Additionally, SMM - which used the trading styles/brand names MoneyGaGa; Loan Zoo; Loan Junction; and i-loans direct - did not make it clear that a fee would be taken, or even carry out any work for that fee.
The investigation revealed that all customers received the same ‘offers’, many of which were unsuitable for their needs, and then charged customers further monthly fees of £4.99 with no apparent justification.
SMM did change its wording on fee charging in March 2014 but by April 2014 had reverted back as it had affected SMM’s revenue.
The investigation also found that the firm never compared loan products from a wide range of lenders as advertised, and told customers it needed to notify these lenders as a justification for not making refunds immeiately, but never contacted them.
SMM further directed customers to other brokers, which resulted in them potentially being charged a number of times by similar brokers.
The directors also made misleading statements to the FCA when challenged, stating that SMM’s websites had been shut down, when in fact they had not, resulting in a further £181,393 being taken from individual bank accounts.
The individuals disqualified are: Mark Robert Kennedy for 8 years; David John Carter Mullins for 8 years; Edward John Booth for 7 years; and Christopher Brotherton for 5 years.
Cheryl Lambert, Chief Investigator at the Insolvency Service, said: "This company was a shark feasting in a pool of the most vulnerable and financially distressed. It took advantage of their desperation for immediate funds, and its own technical expertise, to induce the unwary into a trap from which it was difficult to escape.
"The system that was created resulted in some of the least financially sophisticated members of society having their banking and personal details pinging around a school of sharks to create a feeding frenzy.
"This was utterly cynical and thoroughly reprehensible commercial activity.
"The disqualification of the four people directly responsible is a warning to all directors. The Insolvency Service is continuing to pursue the rogues, chancers and recklessly greedy. There will be a direct personal consequence to the activities undertaken behind the corporate veil."
