Scots Businesses Targeted by Scammers Warns MEP

19th February 2008

Scottish businesses are being targeted by ruthless scammers posing as legitimate European companies in order to extort hundreds of pounds from unsuspecting business owners, warns Scots MEP Catherine Stihler. The mailing scams are targeting small businesses throughout the UK and Europe, and Catherine urges caution when approached by and replying to unsolicited mail.

Having received numerous letters from worried constituents, Catherine has issued this warning in the hope that it will stop Scottish business owners being conned into handing over hard-earned money and signing up for schemes, only to find a charge applies in the small print.

Catherine and her colleagues have had many letters from constituents who have received requests for their updated business details, which are then returned by fax, to then find that the small print outlines an astronomic charge of at least 980 Euros (over £700). A request to cancel "the order" is then refused, and if payment is not met the "debt" is sent to a sister company under the guise of a debt collection agency, which proceeds to increase the amount to over 1113 Euros (over £800).

The two main scams are the European City Guide and The EU Company, from a family of deceptive mailing scams targeting small businesses UK and EU wide. A subsidiary debt collection company connected to the European City Guide is also under criminal investigation in Switzerland.

Catherine commented: "I would suggest to anyone who is worried about making payments to such scams that they are well within their rights not to pay. The 'contract' that they have been tricked into signing has been judged as deceptive by several national authorities across the EU, including the UK's Office of Fair Trading."

"Although the companies and their sister debt collection companies will continue to bully and threaten their victims, they have never been known to take anyone to court. They have been known to offer a 'discount' as a gesture of goodwill which has tricked people in the past into paying - I would not recommend taking them up on this offer, as it is often not enough to end the harassment."

Catherine will continue to work alongside her colleagues to highlight this issue, but in the meantime she advises those who have already been victims of the scam to:

· Not pay

· Visit consumer website www.stopecg.org

· Consult a solicitor

· In return to the harassment state that you are considering legal action against them under European directives on misleading advertising

Catherine also advises those who have yet to be targeted to always check out a company before filling in any paperwork, ensuring you can tell the legit companies from the con-artists.

Further information can be found at www.stopecg.org