Two Glasgow-based debt management firms have been wound up following an investigation by the Insolvency Service. Cost Reduction Services Ltd and Cost Reduction Services (UK & NI), were wound up by Edinburgh’s Court of Session after an investigation revealed they had misled franchisees. ost Reduction Services Ltd was incorporated on 16 April 2010, while Cost Reduction Services (UK & NI) was incorporated on 26 April 2011. Both companies registered their offices at Henderson Loggie, 90 Mitchell Street, Glasgow, Scotland.


The investigation found that Cost Reduction Services (2010) Ltd ran two types of businesses:
  • a debt and expenditure review for businesses and individuals, which claimed to save clients between £500 and £1,500 per month and for which they were charged £3,585, and
  • the “Easyearn Franchise” where clients bought debt and expenditure review franchises for £15,000 per territory with the promise of a return of £46,000 a year, generated by the fees from the reviews, without requiring any effort on their part.
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