[August 19, 2011] : Line cut: two phone companies closed following government investigation Tweet Aug 19, 2011 (M2 PRESSWIRE via COMTEX) -- Two companies that carried out business as providers of fixed telephone lines to domestic customers were this month wound-up in the High Court following an investigation by The Insolvency Service's Company Investigations team. The investigation found that Continental Telecom Ltd ('Continental') and Plus Save Ltd ('Plus Save'), which were under common ownership and management, by Mr Daniel Huxham: conducted business with a lack of commercial probity,: misled the public; and, officers of the company failed to co-operate with the Investigation.; there was a lack of presence at the companies' registered office, leaving no reliable means of contacting the companies or their directors. Continental began trading first in 2008, and then transferred its customers to Plus Save in September 2010. The investigation showed: Continental rented telephone lines from BT and O-bit Telecom Limited, which it then provided to customers. It obtained customers through cold-calling targeting vulnerable members of the public, particularly the elderly, in order to seek to persuade them to transfer their telephone service from their existing provider to Continental. There were a number of complaints raised about the manner in which Continental "sold" its services to the public, and regarding the service it provided. In particular, complaints were made that: Customers had been transferred to Continental without their permission. Customers were persuaded (or misled) into giving their bank details even though they had not agreed to transfer to Continental. However, they were then billed by Continental, and told that a substantial termination fee would have to be paid if they cancelled. Continental misled customers into believing that it was calling on behalf of BT, or that their existing BT lines had already been transferred to Continental. Customers were not provided with contractual documentation, or informed of their right to cancel within a "cooling off" period. When customers sought to cancel within the usual cooling-off period, Continental would not cancel or transfer the contract without penalty. Continental charged customers more than they had been led to believe they would be charged, and charged excessive cancellation or termination fees when customers sought to cancel their contracts. Customers have had difficulty in contacting Continental to complain or seek to cancel their contract. Welcoming the Court's winding up judgment Company Investigations Supervisor David Hill said: "These companies set out solely to mislead the public. The court's decision to wind them up shows the seriousness with which this type of dishonest customer service activity is viewed. ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected]. [ Back To TMCnet.com's Homepage ]