Adult film firm shut over direct debit scam fears

A company which claimed to sell adult films has been shut down by the High Court after concerns it was being used as a direct debit scam.

Drawntear Limited, which said it was based in Hull, had moved its address to Kings Langley in Hertfordshire, but failed to co-operate with investigations, the Insolvency Service said.

Investigators found evidence that the people behind the company were actually based in the Czech Republic and Monaco.

The Insolvency Service said there was "a complete lack of transparency over who controlled Drawntear, the real nature of its trading activities and unexplained payments of more than £280,000 from its bank account".

The High Court in Manchester heard that Drawntear was incorporated with Companies House in November 2019, describing its business as "other retail sale in non-specialised stores".

Accounts for the period up to the end of November 2022 however stated that its principal activity was "the online marketing of adult movies".

There was also some suggestion it provided some form of undisclosed digital streaming services.

But complaints from consumers indicated the company was taking direct debit payments without their permission.

In one example, a complainant identified recurring payments of £29.99 from their bank account to Drawntear which they were unaware of authorising.

A second consumer said that monthly payments which totalled £333.50 had been taken from their account.

Chief inspector David Usher said: "We were concerned that the company was being used as a vehicle for fraud and the absence of any accounting records meant it was necessary for us to take decisive action to prevent further harm to the public.

"The Insolvency Service will not hesitate to take robust action to protect consumers and we would encourage everyone to be vigilant against such objectionable rogue operators."

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