Buy to let property investors are set to mount a legal challenge over millions of pound paid to collapsed property firms Inside Track and Instant Access Properties.
Angry investors allege the firms missold them buy to let property by making untrue claims about their valuations and likely rental concerns.
But a spokesman for the firms denies the claims and says any court action will be defended.
The investors are led by Tamsin Banks, 51, who blames the firms for losing around £400,000 in seven property deals in Manchester, Spain and Florida.
Ms Banks plans to issue court proceedings against the companies and their directors.
She has already met hundreds of other disgruntled landlords who claim they have also lost substantial sums in their dealings with the firms.
“I want to see justice done. I have spoken to hundreds of other former Inside Track members who have lost money and feel the same way,” she said.
Ms Banks wants other investors to join her in a class action against the property investment companies.
Inside Track held seminars for prospective landlords advertising quick riches and millionaire lifestyles at the height of the property boom. The strategy involved buying letting properties from sister company Instant Access Properties.
The firms turned over millions, but failed in 2008 as the property market was undermined by the credit crunch.
Ms Banks has a web site inviting others to pledge cash and support to their legal action. [Link: www.iap-instant-access-properties.co.uk/wordpress ]
She alleges she paid Inside Track a one-off fee of £8,000 and 3% on the value of all property purchases made through Instant Access Properties.
“With 50 – 150 people, we would be formidable and litigation costs would be spread,” she said. “If you had any direct contact with the directors by phone, email or attended a presentation, get in touch as your information could be helpful.
“With many of us pursuing our right for justice these people can be held to account.”
On her web site, Ms Banks accuses Inside Track and Instant Access Properties of misinforming prospective purchasers about rental assessments, property values and the financial interests of Inside Track directors in properties sold to investors.
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