A COMPANY which charged exorbitant fees to list firm's entries on an Internet business directory has been wound up following an investigation by the DTI.

Online Business Index Limited (OBI) contacted thousands of businesses in Manchester and London by mailshot inviting them to add their details to its Internet directory. The firm gave the impression that it was a free service but charged £845 plus VAT per year over a minimum two-year term.

The Advertising Standards Agency said the mailshot was misleading but OBI continued to contact potential clients with a similar mailshot.

OBI used London accommodation addresses but operated mainly from Germany. The majority of customers refused to pay on the basis that they had been misled, but OBI pursued them through debt collection agencies.