A FIRM offering council tax reductions took in more than £200,000 in fees from more than 1,100 people in just six months.

But in that same period, the controversial company paid out rebates to just SEVEN people.

Now the Huddersfield firm has been shut down by Government officials after misleading thousands of people that they would secure council tax refunds.

Reband (UK) Ltd was yesterday wound-up “in the public interest” by a judge at the High Court in Manchester.

The firm, run by Jack Darrell Henry, claimed that it had helped thousands ensure that they were in the correct council tax band.

It stated in its publicity that this had led to hundreds of thousands of pounds being refunded to homeowners.

The Fitzwilliam Street-based firm received more than £200,000 in upfront fees from more than 1,100 people in just six months, between August 2011 and February 2012.

But an investigation by the Insolvency Service found that the firm had successfully obtained a reduction in council tax for just seven householders.

Henry was not present at the brief hearing, nor did he have any representative there.

District Judge Graeme Smith stated yesterday: “It’s quite clear to me that this company should be wound-up in the public interest.”

The Insolvency Service had brought court action against the firm.

Simon Charles, on behalf of the Secretary of State for Business, Innovation and Skills, said that the company had embarked upon a number of “objectionable” trading practices.

He said that the firm would “cold call” potential customers without undertaking any screening process to see if the customer was registered with the Telephone Preference Service.

Mr Charles said: “Few steps were taken to see if the customer had any real prospect of being able to lower the council tax brand of their property.

“There were examples where the company called householders who didn’t even pay council tax and tried to sell them services.”

Mr Charles said that “misleading” information was given to customers about their prospects of success and the fees that would be charged.

This would induce customers to pay an upfront fee, typically of £175.

In return the company claimed it would assist householders to reduce their council tax by lowering the council tax band in which their property had been assessed.

Investigators found that it contacted 1,167 householders and received £200,930 in upfront fees in six months – despite helping just seven.

The firm also breached the Distance Selling Regulations by failing to inform people of their cancellation rights.

It failed to refund cash to householders, either in a reasonable time or at all.

Mr Charles told Judge Smith that Mr Henry acted as a director of the company, despite a seven-year ban on him being a company director imposed in April 2006.

He said that the company’s website showed a lack of transparency as it both “grossly exaggerated” its achievements and had the word “National” in its title despite having no permission to do so.

The Judge was told about Henry’s other court appearances.

In January he was given a nine-month suspended prison sentence after admitting 14 charges of breaching consumer protection regulations.

Then in March a judge awarded 12 former employees of the firm more than £30,000 in unpaid wages.

Mr Charles said that the businessman provided inadequate records to account for his actions, including no proper explanation for significant transfers of cash to his personal accounts.

Judge Smith said: “No reasons have been put forward on behalf of the company as to why it should not be wound up.

“There’s an abundance of reasons why it should be.

“Most significant is the objectionable trading practices by the company.

“It provided misleading information about the fees and prospects of success.

“It said it had helped thousands to receive funds of hundreds of thousands of pounds, while the evidence indicates seven successful claims.

“It’s difficult to see how the figure thousands could be arrived at.”

Colin Cronin, who supervised the investigation, welcomed the result.

He said: “Reband (UK) Ltd grossly misrepresented its ability to secure council tax refunds for householders and the sales methods used by the company flouted legislation specifically designed to protect consumers.

“These proceedings make clear that The Insolvency Service will take firm action when the public are deliberately misled in this way.”