When it was first revealed two weeks ago that Lets Home Providers, on Station Road, had taken rent off tenants but not paid it into landlords' accounts, anxious readers contacted each other on the Tizer's website to find out more information.

Since then it has been revealed that one landlady received a letter last week from an insolvency company saying the company has gone into liquidation and that there would be a meeting next Tuesday for those out of pocket.

Police have also launched an investigation and passed it on to the Department of Trade and Industry (DTI).

Insp Pete Szabo, at Ilkeston police station, said: "We have received a large number of calls from all over the country in relation to your initial article. Having discussed the information received with our Economic Crime Unit, the case is being passed to the Department of Trade and Industry (DTI) who will be investigating further. They have full criminal investigatory powers if it does appear that any offences have taken place.

"So far no arrests have been made and it is clear from the information already passed by callers that there will be a long period of further investigation necessary by the DTI."

The letter, from the insolvency company Turpin, Barker and Armstrong, sent to Mary Bartham, says there will be a meeting with them next Tuesday at 12 noon at the Holiday Inn in Sandiacre.

Mrs Bartham, who rents out a property on Malthouse Road, said: "I rang the Citizen's Advice Bureau and they said if the company owes any money to the taxman it will go to him first, and we'll have to see what's left. It doesn't look good."

Last month landlords repeatedly rang the office, sent un-answered emails, and said items such as computers and printers were gradually being cleared from the office, which has been empty since the end of September.

Mrs Bartham is over £2,000 out of pocket. Lets took £1,500 off her tenants on September 6 for a bond, admin fees and the first month's rent, and a further £550 rent on October 4. But Mrs Bartham says she has not seen a penny of it.

In October she asked her tenants to change their standing order to pay directly into her account.

Director of Lets Home Providers, David Kay, owns a lot of property in Ilkeston.

Estate Agent Whitegates on Bath Street is now offering discounts to landlords who want to transfer over to them.