TRADING standards officers are warning companies about a fraud that tricks them into paying for services they do not need.

In recent weeks a number of businesses in Darlington have received official-looking letters ordering them to pay £95 to register under the Data Protection Act, or face possible criminal proceedings.

The Data Protection Act allows certain companies to keep people's personal details on file.

The bogus letters state that it is a criminal offence not to register under the Act and court proceedings will follow if money is not paid.

But many of the businesses which have been sent the letters do not need to register under the Act, and those that do could organise it themselves for £35. As well as sending out letters, some bogus collectors have turned up at business premises in the town demanding money for the registration.

However, staff from the Information Commissioner's office, which organises the registration for businesses, never make personal visits.

Following complaints about the visits, letters and threats of legal action, Darlington Borough Council's trading standards team has called on businesses to be wary of anyone asking for money.

Paul Baldwin, the council's cabinet member for community protection, said: "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, these collectors are charging around £95, with some targeting companies who do not even need registration but rely on them accepting what they are told.

"Any letters from firms calling themselves a data protection agency or registration service and asking for more than £35 have no connection with the Information Commissioner and should be ignored.

"We urge all companies, especially when staff levels are low at this time of year due to holidays, to be doubly vigilant and, if in doubt, contact the local trading standards service for advice."

Anyone who receives a letter is advised to contact the Information Commissioner to find out if they need to register to hold information before making arrangements to pay the £35 fee directly.