Fraudsters at family firm hit by ban over mobility scooters scam

A FATHER and his two children have been banned from being company directors for a total of 26 years for selling high-priced scooters to disabled and elderly people without assessing their needs.

James Robinson, 77, Andrew Robinson, 47, and Jacqueline Salt, 43, set up Keighley-based Luggie UK Ltd in 2010.

But an investigation by the Insolvency Service found the firm displayed a “serious lack of professional diligence” in selling mobility products, used high-pressure sales techniques and did not assess individual needs. Most buyers were unable to operate scooters they purchased.

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Luggie referred to its salespeople as “assessors”. But in reality they were not qualified, and used high-pressure selling techniques to secure a sale and immediate payment of the full purchase price.

The firm was wound up in the public interest in May last year.

An investigation by the Insolvency Service’s public interest unit revealed that nearly half of Luggie’s customers were unsatisfied, suffering estimated losses of at least £50,000.

Ken Beasley, the official receiver at the 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’.

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“The victims of this scam end up paying for something and getting nothing they could use.”

Mr Beasley added: “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.”

Mr Robinson and his son admitted that they used unfair trading practices, adopted unreasonable and improper after-sales practices such as refusing refunds, and issued letters to customers displaying a lack of transparency over the identity of the company and its officers.

They were disqualified for 10 and nine years respectively.

Ms Salt, who was banned for seven years, did not dispute that she did not have sufficient knowledge of the business to properly discharge her duties.