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Director trio banned for 26 years 29 October 2013

A trio of directors of Yorkshire-based company Luggie UK Ltd have been barred from acting as company directors for a total of 26 years.

Following an investigation by The Insolvency Service, James Robinson, and his children Andrew Robinson and Jacqueline Salt, have been disqualified for selling high priced scooters to disabled and elderly people, without assessing their needs.

The examination into the company found that between January 2011 and February 2012, Luggie demonstrated a “grave lack of professional conscientiousness” by using high pressure sales techniques to sell mobility scooters and other mobility products to the public, without regard for individual needs. The investigation found the majority of the customers could not manage to operate the devices.

Ken Beasley, official receiver at the Public Interest Unit said: ““The behaviour of these directors was particularly unpleasant because they targeted the most susceptible and vulnerable members of society, older people who may be unsure how to seek advice or others afraid to or not in a position to say “no”.

“The victims of this scam end up paying for something and getting nothing they could use. The worst aspect is the callousness with which the fraudsters went about their business; ignoring the obvious fact that that because of their age or disability, most victims will never be able to make good their loss.

Luggie salespersons were styled ‘assessors’—giving the impression that the suitability of the mobility product would be assessed—the salespersons sent out to interact with customers were not qualified assessors.

The sales script created to encourage potential customers to make appointments for the assessment of their individual needs and requirements were abandoned in favour of “high pressure selling techniques” that secured sales and the immediate payment of the full purchase price.

Though initially investigated by the Department for Business, Innovation and Skills (BIS), a secondary investigation conducted by the Insolvency Service’s Public Interest Unit found that approximately 50% of Luggie’s customers were unsatisfied, suffering estimated losses of £50,000.

 

 

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