A RICKMANSWORTH business is warning other companies to be vigilant after it received a demand for payment from a bogus data protection collection agency.

Hunter Lodge Design in High Street notified The Watford Observer after it received a letter from Crown Data Collection Enforcement Agency demanding £95 payment.

The letter stated the company was not registered under Data Protection Act 1998, which constitutes a criminal offence.

Companies that hold certain kinds of data are required to register with the Information Commissioner.

However, other than paying the annual statutory notification fee of £35, on which no VAT is payable, there is no charge for data protection registration.

The agency and others, including Data Protection Act Registration Service, Data Protection Agency Services and Data Protection Corporation, have no connection with the Information Commissioner.

The Commissioner Richard Thomas has advised all companies approached in this way not to make any payment and to notify the police.

A spokesman for Hertfordshire Constabulary said police were aware of such activity, but no reports had been received locally.

However, the agency, which operates from an address in Hyde, Cheshire, is known by the authorities.

Mr Richard Hunter, whose son Richard runs Hunter Lodge Design, warned other companies to be careful.

He said: "If any letter asks me for money I tend to look at it a bit harder anyway."