CONSUMER watchdogs in Darlington are warning traders about a fraud based on the Data Protection Act.
The warning follows a spate of complaints about collectors' letters, requesting payment for registration.
Only certain businesses holding clients' personal details on computer are required by law to apply for data protection registration, which can be done independently for a fee of £35.
However, some "collectors" are charging £135, with some targeting companies who do not need registration, but rely on them accepting what they are told.
Councillor Chris McEwan, Darlington Borough Council's cabinet member for public protection, urged companies to be vigilant and, if in doubt, contact the local trading standards service for advice.
Businesses can check whether they need to register by telephoning (01625) 545740.
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