News Article

Legislation & Litigation

First Money Direct husband and wife director duo disqualified after leaving 99% customers dissatisfied

By CreditMan Tuesday, September 30, 2014

The directors of a Manchester-based loan brokerage First Money Direct Limited (“FMD”) have been disqualified by the High Court for their part in the management of the Company, which failed to secure loans for over 99% of fee paying customers.

The disqualifications follow the winding-up of the company on public interest grounds and an investigation by the Insolvency Service.

Husband and wife Assad Ayaz Ajmi and Zaibunnisa Naji (both 33) have been disqualified from acting as directors of a limited company for nine and four years respectively not only for failing to source loans for clients but also failing to reimburse brokerage fees to dissatisfied clients.

Mr Ajmi and Ms Naji subsequently abandoned the Company, which resulted in the loss of the Companies records. Consequently cash withdrawals totalling £11,727 and cheques totalling £22,354 in value have not been accounted for.

Commenting on the disqualifications, Ken Beasley, of the insolvency Service’s Public Interest Unit said, “The disqualified directors allowed the companies to be involved in a scheme to take monies from members of the public who, on the whole, were people already in financial distress, for which little or no service was rendered and failed to maintain proper accounting records. The Insolvency Service will not hesitate to use its enforcement powers to remove irresponsible and culpable directors from the business environment”.

The investigation found that between 28 May 2010 and 13 September 2011 FMD referred at least 1,353 fee-paying clients to loan providers and of these customers less than 1% received satisfactory offers of loans and thereafter entered into loan agreements. The Company was wound up in the public interest on 2 May 2012 upon a petition issued by the Secretary of State for Business, Innovation and Skills. Subsequent investigations revealed that the Company owed a total of £380,603, including £295,745 to customers.

Whilst not appointed as director of FMD, Mr Ajmi managed the day to day affairs of FMD and Ms Naji was effectively a director in name only.

First Money Direct Limited (“FMD”) (CRO No. 07188006) was incorporated on 12 March 2010.