We paid a Sussex company called Ieo Home Improvements £2,388 by bank transfer last December as a deposit for a conservatory.
The owner, Luke Tester, said he would visit during the first week of January to measure up, but he never appeared. A couple of days later I saw him on BBC South East Today explaining that he had closed Ieo and was now running L&J Home Improvements.
He had taken our money after applying to Companies House for his company to be dissolved. I emailed him and was referred to an insolvency company. Although Tester’s website, now taken down, had said all deposits were guaranteed by the Independent Warranty Association (IWA), because he failed to give us a certificate our deposit was not covered. LF, Seaford, East Sussex
You are among at least 30 householders to have been left out of pocket by Luke Tester, including two who have had conservatories built so badly that they are unsafe to use.
This is an example of the flaws in trading regulations. Anyone can set up a limited company with themselves as director and evade liabilities if it goes under. There is then little to stop them setting up another limited company and starting again from scratch. If they get struck off as a company director they can appoint a relative instead.
Tester, 38, has set up six home improvements companies since 2006, the last two within a week of each other this January. The second, Warmseal Windows Ltd, was dissolved this month. When the Observer contacted Tester he did not wish to comment.
It’s unfortunate that you paid by bank transfer. If you had used a credit card you may have been able to recover the deposit under section 75 of the Consumer Credit Act, while debit cards carry some protection under the chargeback scheme if a trader is in breach of contract.
IWA, which insures deposits, tells me that Ieo did not pay the premiums for some of its customers, including you, and so you are not covered. “If Luke Tester has misrepresented IWA or has fraudulently deceived his customers then we will be referring this matter to our solicitors with a view to taking action against him personally,” says a spokesperson, who asks for any customers with evidence of deception to contact the association.
West Sussex Trading Standards says that it is aware of Ieo. “We advise consumers to try to seek three quotes from traders, preferably using the Buy With Confidence directory,” says a spokesperson. “We also advise to never pay upfront for services.”
Sadly, it is unlikely you will see your money again, but you could help other people to avoid the same fate. Nitin Khandia, a director of the civil litigation and dispute resolution department at BTMK Solicitors suggests reporting Tester’s conduct to the liquidators of Ieo, who will then refer it to the Department for Business, Innovation & Skills for them to consider his disqualification as a director.
“Given that an application had been made to Companies House to strike-off the company before the deposit had been taken certainly adds credibility to this type of claim,” Khandia says.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
