Former customers of the now-defunct Poulton Road Newsagents, which closed down in January, say they have been disturbed by demands about unpaid newspaper bills.

Some readers say they have been told to pay up bills considerably larger than the amount they actually owe, and have also been threatened with bailiff action.

A number of these customers, all elderly, have paid up out of fear for the consequences, even though they were unhappy about the amounts demanded.

The debt recovery agency involved is a firm called Daniels Silverman.

Carol Hughes, the Liverpool-based managing director of Daniels Silverman, said: "I am sorry to hear that some of these people have been distressed, but we have only acted on the information of the liquidator dealing with this the case, who passed on the details of each individual and what they owed.

"We are a reputable company and have acted in good faith."

Weekly News reader Betty Williams contacted Lancashire Treading Standards after her sister ended up paying a demand for £22, even though she calculated her actual bill as being only £10

Mrs Williams said: "My sister only paid the demand because she was worried and didn't want any hassle, but I am very unhappy about it."

Lancashire's chief trading standards officer, Jim Potts, said: "There is legislation in place to protect people in cases where debt recovery firms use practices which could be construed as threatening or where the nature of the demands are in disproportion to the amount owed.

"We have successfully prosecuted debt recovery firms which have been in breach of strict guidelines.

"I cannot say at this stage if that is the case here, but we will certainly investigate this matter now that it has come to our attention."Mr Potts urged residents who were unhappy about the demands to contact Lancashire Trading Standards on 08454 040506.