Media company with “largest UK database” placed into liquidation

Blog Insolvency

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A company has been placed into compulsory liquidation after racking up debt of more than £2 million, a report by the Insolvency Service has shown.

The regulator for bankruptcy and insolvency in the UK also banned the company’s director for a period of 12 years.

The Halifax-based marketing company, Reactiv Media Ltd, was found to have made thousands of unsolicited calls for direct marketing purposes. It also boasted that it was in ownership of one of the “largest databases for UK consumers”.

These types of databases, containing email addresses, telephone numbers and other sensitive material, are used to target a specific group of customers with new products and services.

According to the report, the directors had failed to ensure that the company complied with its responsibilities under the Privacy and Electronic Communications (EC Directive) Regulations 2003, as well as The Conduct of Authorised Persons Rules 2014. It said this lead to an unpaid penalty of around £75,000.

The company was also found to have traded while insolvent to the detriment of HM Revenue & Customs.

David Brooks, Group Leader at The Insolvency Service, said: “There are three distinct allegations underpinning this disqualification. As a whole, they show a director who flagrantly breached his duties to regulators and company creditors over an extended period. The privilege of limited liability status should be removed from such individuals.”

Andy Curry, ICO Enforcement Group Manager added: “This latest disqualification of a company director is another welcome step towards stopping the scourge of nuisance calls.”