TRADING Standards have issued a warning to residents in response to a sales scheme that has left more than a hundred people in financial ruin.

Alexander Kitchens, of Melford Court, in Woolston, promised customers cash bonuses if they could refer other buyers to the company.

Many people entered into the scheme and signed high interest credit agreements believing that the cash bonuses would cover their payments.

But Alexander Kitchens ceased trading at the beginning of July and with bonuses no longer on offer, customers who thought they were getting the deal of the century have been told by creditors they now owe thousands.

Beryl Davies, who lives in Stockton Heath, and her partner George Were renovating their home and saw the scheme as a way of having a kitchen they could not otherwise afford.

Beryl said: "The salesman priced the kitchen at £12,400 but he made it sound like monopoly money, telling us that we would have so many cash payments coming to us through referrals that we wouldn't have to pay a penny.

"After the kitchen was installed we produced leaflets which we posted through doors and got ten referrals for Alexander Kitchens, but now they have ceased trading we won't receive any of the bonuses.

"We have worked out that if we pay the credit agreement off over 10 years as agreed, we will be paying £36,000 because the interest rate is so high.

"We are waiting to hear from the creditors to see if something can be worked out, but we may have to sell our home because we just can't afford to make the payments."

Beryl added: "I will never trust a salesman again. You hear about things like this happening all the time but you never think it will happen to you."

Warrington's trading standards told the GUARDIAN that more than 100 complaints had been received about credit agreements relating to purchases from Alexander Kitchens, but stressed that no laws had been broken.

Principal trading standards officer Peter Astley said: "It appears that to some extent people have been diverted away from the credit agreements with sales patter, but unfortunately they are very important. People should ensure, before they sign a credit agreement, that they are able to make the payments because if anything goes wrong with the company they will be ones who have to pay and they should ensure that all the personal details have been entered correctly."

Anyone in the Warrington area who has been affected by Alexander Kitchens' cease of trade can contact Warrington Trading Standards on 422678.

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