They were colloquially known as "Saxtons" which created considerable confusion as to which particular company customers were dealing with. This practice also facilitated the continuance of the business through a series of phoenix companies, the older companies being abandoned with liabilities but no assets.
The investigation found that numerous complaints had been made by landlords and tenants about the wrongful retention of rental payments and deposits.
Despite the companies purporting to operate a tenancy deposit scheme they had no mechanism in place to protect such deposits.
In addition the companies falsely represented that they were members of industry bodies, thereby implying a level of protection of monies collected on behalf of landlords and tenants as well as the application of defined standards of customer care.
In winding up the companies the High Court found that they had traded in a manner which was contrary to the public interest.
Have your say on this story using the comment section below