Unity went into liquidation in September after being unable to collect money from customers signed up by a call centre offering a ‘no credit check’ promotion.
Unity was established in Watford in 2002 to offer fixed-line and mobile solutions to business users. It was approached in late 2006 by Exradia to promote the firm’s anti-radiation technology, which is built into mobile phone batteries and, it claims, protects users from the electromagnetic radiation handsets emit. Exradia wanted to bring its product to market as an add-on to Unity’s T-Mobile tariffs.
Unity began selling the deals in March 2007 through a Nottingham-based call centre.
In June, more than 50 per cent of new customers were failing to comply with direct debit payments. Unity discovered the call centre was promoting a no credit checking deal, and attracting high-risk customers.
While Unity re-introduced mandatory credit checking, direct debit failures continued with less than 50 per cent of customer bills being collected.
Unity therefore ran out of money to pay its suppliers, including Exradia, who is owed an undisclosed amount in customer connection payments.
Unity received a letter from Exradia’s solicitors threatening legal action unless the amount claimed was paid in full. Discussions are being held with Exradia to negotiate a solution.
Exradia chief financial officer Neale Perrins said Exradia’s entry to the market was brought to a halt when Unity went into liquidation. Perrins said: “We’ve suffered as a result. We decided to find better platforms than direct selling and more efficient routes to market.”