Affinity Technology Solutions Limited and RCSR Tech Limited, both of which claimed to offer online protection and social media enhancement services, were wound up following an investigation by the Insolvency Service.
Two Manchester-based technology firms have been shut down by the High Court following allegations they operated a direct debit scam, signing up unsuspecting consumers for monthly payments without their consent.
Affinity Technology Solutions Limited and RCSR Tech Limited, both of which claimed to offer online protection and social media enhancement services, were wound up following an investigation by the Insolvency Service. The probe revealed that both companies had been withdrawing subscription fees of around £29.99 per month from consumers who had neither knowingly signed up for the services nor authorised the payments.
Affinity Technology Solutions claimed to provide an identity protection service called IDSafeGuard, designed to safeguard users’ personal information online. Meanwhile, RCSR Tech Limited purportedly offered a service called ReportCurve, which it said enhanced an individual’s social media presence to improve job prospects and financial eligibility. However, complaints surfaced that individuals had been charged for these services without their knowledge.
The probe revealed that both companies had been withdrawing subscription fees of around £29.99 per month from consumers who had neither knowingly signed up for the services nor authorised the payments.
Suspected Fraudulent Subscriptions
The scheme is believed to have been linked to an online loan application process, where individuals may have inadvertently been enrolled in unwanted subscriptions while applying for financial assistance. Many of those affected reported difficulties in cancelling their subscriptions and obtaining refunds.
David Usher, Chief Investigator at the Insolvency Service, commented on the severity of the situation: “Numerous complaints were made that Affinity and RCSR were tricking consumers into monthly subscriptions for products they did not want or were entirely unaware of. Indeed, from our investigations, it is not clear that either company provided any of the services to their unwitting customers.”
He added: “Both Affinity and RCSR completely failed to co-operate with our investigations, leaving us with no option but to take this robust action to stop the companies from trading in the future and protect the public from further financial harm.”
Lack of Compliance and Financial Transparency
The Insolvency Service discovered that the two companies were closely connected, with both being incorporated within two days of each other in February 2020. Official records listed their registered office at the same address on Wilmslow Road in south Manchester. While their Companies House filings described them as providers of business and domestic software development, the investigation revealed that both firms were controlled by an undisclosed individual who was not listed as a director.
Investigators attempted to contact the listed directors of both firms, as well as the individual believed to be in actual control, but none of them cooperated. Further concerns arose when it was found that both companies had failed to file mandatory financial accounts with Companies House, raising suspicions about their legitimacy and operations.
Court Order and Liquidation
Following the High Court’s ruling, the Official Receiver has been appointed as the liquidator for both Affinity Technology Solutions Limited and RCSR Tech Limited. Consumers seeking further information or assistance regarding the companies’ affairs have been advised to contact the Official Receiver at the Public Interest Unit, based in London.
Authorities have reiterated that Affinity Technology Solutions is not linked to other firms with similar names and warned consumers to remain vigilant against deceptive subscription models.
The case highlights ongoing concerns about fraudulent direct debit schemes and the challenges faced by regulators in tackling financial misrepresentation in the digital services sector. The Insolvency Service has urged consumers to regularly check bank statements for unauthorised charges and to report suspicious transactions immediately.
The closure of these firms underscores the importance of regulatory oversight and consumer protection, as authorities work to prevent similar fraudulent schemes from emerging in the future.
