POLICE have warned businesses to be alert for a North-East company which is charging firms £100 to register with the data protection service.

Detectives said businesses were being asked to pay the charge, even though it only costs £35 to register with the Information Commissioner's Office.

The police said a number of companies across the UK, including the Data Protection Corporation in Guisborough, east Cleveland, were not doing anything illegal but were a concern.

Detective Inspector Colin Gibson, head of the economic crime unit at Durham Police, said: "A lot of these companies have been set up. They say if you pay them a fee - around £90 to £100 - they will register you with the Information Commissioner.

"What they're doing isn't strictly illegal, because they are providing a service, but the concern is they're suggesting they're acting on behalf of the Information Commissioner."

A Cleveland Police spokesman said similar schemes were commonplace and echoed Det Insp Gibson's comments.

The spokesman said: "It isn't an offence but I would take the opportunity to strongly advise any business to simply register directly."

A spokesman for the Information Commissioner said the commissioner's office had been inundated with complaints.

He said: "Individuals pose as collectors for data protection and attend business premises requesting payment. They may even produce identification cards. However there is no connection between the Information Commissioner and such individuals.

"The commissioner advises those approached this way not to make payment."

He said: "We would stress that not every firm need register at all and others may be registered and not release. We would simply ask anyone in doubt to call our information line."

The police advise that businesses pass any correspondence to their local trading standards department, or contact the Office of Fair Trading.

The Data Protection Corporation in Guisborough has a Post Office Box address and does not have a listed telephone number. It could not be contacted for comment yesterday.

The Information Commissioner's Office information line is (01625) 545740. Alternatively visit the www.informationcommissioner.gov.uk website.