A NOTORIOUS car clamping company has been given three months to file accounts with Government business regulators or risk being dissolved.

By law, all limited companies have to register with Companies House and file copies of their accounts every year. In return, their directors are protected from being personally chased for company debts by creditors.

Southend and Wickford-based LBS Enforcement Ltd’s accounts are now more than three months overdue and Companies House has issued a notice to strike the company off its register and dissolve it by February 2.

LBS’s clamping practices – including demanding as much as £900 from motorists to free cars parked in areas where it operates – have been highlighted in a series of stories in the Echo.

It was also exposed earlier this year by the BBC’s Watchdog programme.

The company has also been ordered by a court to pay £17,500 to various creditors, but has not done so. In addition, it is being investigated by police, with two of its staff arrested and questioned on suspicion of fraud in Clacton.

LBS’s days are believed to be numbered anyway, because the Government plans to ban the kind of clamping and towing operations it runs, though Parliament has yet to pass the necessary legislation.

James Duddridge, the Tory MP for Rochford and Southend East, a longtime critic of LBS, commented on the latest news by saying: “This is a disreputable company we are best shot of.

“Hopefully, it won’t mean LBS will reappear in a different guise and this will the final death blow. Good riddance to it.”

However, concerns have been raised that if LBS is dissolved, its creditors will never see the money they are owed.

In September, the Echo reported LBS had 26 outstanding County Court judgments against it, with its liability totalling £17,517. LBS has faced several court claims from drivers alleging their vehicles were unfairly clamped or towed because they would not pay the company’s huge fines.

Debbie Randall’s husband was clamped by LBS about a year ago in a private car park in Websters Way, Rayleigh, while he was shopping and inadvertently parked in the wrong bay.

She said: “I don’t think anyone has ever got any money back from them. I think it’s just disgusting how they operate.”

LBS refused to comment on the latest developments.

Andrew Skinner, a partner at Palmers Solicitors in Basildon, explained the law. He said: “Companies have a duty to file their returns and accounts annually.

“If they don’t, they’re struck off the register and if they don’t respond in time, they cease to exist. It’s not necessarily the death knell for them, but it probably is.”

Mr Skinner said those owed money by dissolved companies could apply to have the company restored to the register simply so they could be sued.

He also suggested creditors could apply to wind up a company, a process which would trigger an investigation into the way the directors ran it and could even result in them being personally liable for the debts.

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POLICE are investigating claims clampers confiscated a man’s £10,000 car and refused to give it back.

Scott Cunningham, 24, from Rayleigh, now fears LBS Enforcement has sold his black Alfa Romeo 147 T-Spark.

He was clamped behind Domino’s Pizza’s premises in Webster’s Way, Rayleigh, where he works.

When he couldn’t pay the £610 release fee, LBS towed the vehicle away depriving him of the car and its contents, including £90, a £200 sat nav, his father’s laptop, his grandmother’s disabled parking badge and his driving licence.

Mr Cunningham says he has been unable to get any of it back, despite offers to pay the full amount.

He has now learned the car was re-registered with the DVLA the same day it was towed away – September 8.

He said: “The car was important to me. I spent lots of time and money on it. I’m shocked, but not that surprised, really.”

Mr Cunningham has complained to police.

A police spokesman said: “We were called to reports that a man had had a dispute with car clampers in Rayleigh. Officers continue to investigate.”

An LBS spokesman said it was a civil matter and refused to comment further.