THE promise of a grant from a European money mountain had a cash sting in its tail for a new Pendle business.

Now husband and wife Raymond and Margaret Fort want to warn other people about parting with their hard-earned cash after they were obliged to pay a deposit - to 'process the paperwork'.

They have since found out that no-one applying for any European, government or local authority grant is ever asked for a fee.

The Forts, of Every Street, Brierfield, sank their savings into their own removals company and were keen to learn more when they were offered a possible grant.

They were approached by a Liverpool-based company and told they would qualify for cash from Europe because they were a new company.

In return, they were asked to pay £300 towards the cost of a £900 administration fee.

Said Mrs Fort: "I don't want anyone else to face losing their money. A lot of people round here are unemployed and they are trying their best to make a living by setting up on their own.

"The bloke who came to see us got our name from the Yellow Pages and said he intended to call on lots of small businesses in the area.

"He was very convincing and told us the place was awash with grants for people like us but that local councils were jealous of anyone else giving out cash and kept the know-how quiet.

Mrs Fort handed over a £50 cheque as a deposit, but worried about it. Her fears were confirmed the following day when she rang Pendle Council.

She added: "It niggled me all night. I didn't know who to turn to, but as soon as I mention what had happened they said don't touch it with a barge pole. We cancelled the cheque straight away." Trading standards officers have issued a warning to businesses about the growing number of European business grant agencies. A county council probe found that no appropriate grants had ever been identified and, because of small print in contracts, no refunds had ever been given.

Hugh Simpson of Burnley council's economic development unit, told the Citizen: "Information on grants is available free of charge from ourselves, the TEC and many other advice agencies.

"Do not be tempted to pay money to commercial companies for business grant information or assistance that is freely available elsewhere."

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