Home / Business and Economy / Companies House Glitch Fuels Third-Party ID Check Fees
Companies House Glitch Fuels Third-Party ID Check Fees
8 Mar
Summary
- Third-party firms charge hundreds of pounds for free ID checks.
- Elemental CoSec offers services for up to £840.
- Less than half of directors have completed mandatory ID checks.
Third-party agencies are capitalizing on a problematic ID checking system implemented by Companies House. These firms are charging individuals hundreds of pounds for identity verification services that are available for free. One company, Elemental CoSec, offers an 'executive' package for £840, including a 'verification officer' and 'tailored professional support.'
This situation arises as reports indicate innocent individuals are being falsely appointed as directors of fraudulent companies due to identity theft, a problem the checks were intended to prevent. The mandatory ID checks were introduced in November, but only three million of the UK's seven million directors have completed them so far.
The clunky One Login digital system used for the checks has created an opening for these fee-charging third-party firms. Companies House has stated it does not endorse any agents on its list and has no authority to regulate the fees they charge, advising individuals to conduct their own due diligence.
