MIL-OSI United Kingdom: Company which claimed to market adult films is shut down for suspected direct debit scam

• Investigations into Drawntear Limited showed that the company appeared to take direct debit payments from consumers without their knowledge or authorisation 
• Drawntear claimed in previous accounts that it marketed adult movies but no evidence was provided about how the company traded or who really controlled its business activities 
• The company has now been wound-up in court following an application by the Insolvency Service 

A company which claimed to sell adult films has been shut down following concerns it was being used as a direct debit scam.  

Drawntear Limited was wound-up at a hearing of the High Court in Manchester on Wednesday 12 February. 

The company, which said it was based in Hull before moving its registered office address to Kings Langley in Hertfordshire just last month, failed to co-operate with investigations by the Insolvency Service. 

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

Complaints made to Action Fraud also indicated that the company took unauthorised payments from members of the public. 

David Usher, Chief Investigator at 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. 

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.

Drawntear was incorporated on 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 is also some suggestion it provided some form of undisclosed digital streaming services. 

Attempts by the Insolvency Service to establish the true nature of the company’s trading activities were met with insufficient co-operation. 

The failure to produce accounting records also meant that payments into Drawntear’s account of £283,098 and receipts of £294,234 were not explained. 

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. 

The Official Receiver has been appointed as liquidator of Drawntear Limited. 

All enquiries concerning the affairs of the company should be made to the Official Receiver of the Public Interest Unit: 16th Floor, 1 Westfield Avenue, Stratford, London, E20 1HZ. Email: piu.or@insolvency.gov.uk. 

Further information 

• Drawntear Limited (company number 12303271) 

• The Insolvency Service can investigate complaints about corporate abuse by live companies. This may include serious misconduct, fraud, scams or dishonest practice in the way the company operates. Further information on our live investigations can be found here 

• Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available here.