Charity regulators issue warning about fake clothing bin removal notices

10 Oct 2019 News

Charity regulators have issued a warning about a company called Compounding Action, which has been issuing false clothing bin removal notices to charities.

The Charity Commission and the Fundraising Regulator have said that Compounding Action (registered company number 10879744) has been issuing notices telling charities they must remove their clothing bins with immediate effect.

The Commission said: “If your charity receives one of these notices you have no obligation to comply.”

The Fundraising Regulator stated: “The notices say that the owners of clothing banks have failed to comply with various Acts of Parliament or regulations. In addition, we are aware that some organisations may have received correspondence from an entity named Fundraising Bureau of Investigations Ltd (registered company number 11807195), claiming that it is conducting an industry wide investigation and seeking the provision of contractual documents.”

It added: “The Fundraising Regulator wishes to make it clear that these notices and correspondence are issued without its consent and it is not party to them.

“Organisations receiving these notices and correspondence should be clear that they are under no obligation to comply with them or to provide Compounding Action or Fundraising Bureau of Investigations with the information they ask for or to meet any costs they say they may incur.  Neither Compounding Action nor Fundraising Bureau of Investigations is acting with the authority of The Fundraising Regulator.”

The Fundraising Regulator issued a sample of one of the notices being circulated. It falsely stated: “The owner of the clothing/shoe bank must remove this bin with immediate effect. Failure to comply with this notice shall result in action being taken by compounding action to remove this bin from this site should the owner of this bank not comply with this notice”.

The sample adds: “Any cost incurred by this action will be recovered by Compounding Action. At all times compounding action ltd shall accept full responsibility and or liability for any damage to the bin and is contents in the event of its compounding and storage.”

At the moment there is an active proposal to strike off Compounding Action limited from Companies House. Fundraising Bureau of Investigations was incorporated on 5 February 2019, according to Companies House.

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