DTI launches investigation into Dorset broker

The Department of Trade & Industry (DTI) has agreed to look into Dorset broker Gateway Finance.co.uk after licensees across the UK were left out...

The Department of Trade & Industry (DTI) has agreed to look into Dorset broker Gateway Finance.co.uk after licensees across the UK were left out of pocket.

Following an exclusive story by The Publican last week the DTI has said it will look into complaints from licensees about the company.

In the last week The Publican has received another raft of complaints from publicans who have been left with no finance after paying the firm's administration fees.

Licensees claim they have been promised a loan or mortgage, paid the administration fee of £350 and have not received the deal that they were promised.

Some have paid arrangement fees of close to £5,000 while others have paid for valuations costing up to £1,600 and claim the company has not delivered on its promises.

Dennis Price, partner in the six-strong Bristol-based pub chain Ceastan Inns, has a County Court judgment against Gateway Finance.co.uk. The company paid an administration fee of £700 to Gateway Finance.co.uk in 2002 for it to organise finance of £250,000 for the pub chain, which never materialised. Mr Price claims that because Gateway Finance.co.uk has changed address on a number of occasions the court bailiffs have not been able to recoup the debt.

He said: "We have a County Court judgment against these guys from September 2003. We have sent the bailiffs in on a number of occasions and we are currently trying to make them bankrupt."

Licensees Laura and Ken Rice paid out £5,150 to Gateway Finance.co.uk two years ago and have still not received a loan. Mrs Rice told The Publican: "We paid £4,800 as well as a £350 administration fee and we never got the loan. We went to see the company and it said it would be okay for our loan. Then we could not get hold of the company again and when we finally did it said if we wanted the loan we would have to pay the £4,800 arrangement fee."

All attempts by The Publican to contact Gateway Finance.co.uk had proved unsuccessful at the time this article was posted.

The Publican has sent its file of information on the broker to the DTI.