A COLCHESTER company which offered members of the Armed Forces help with buying homes has collapsed, leaving soldiers serving in Afghanistan thousands out of pocket.

Hundreds of current and former military personnel got letters last week telling them Blue Force Property and Blue Force Services went into liquidation.

Colchester MP Bob Russell said the firms had been based at former garrison buildings rented from the Ministry of Defence in Flagstaff Road.

They helped troops find a home, get a mortgage and set up accounts where mortgage payments and bills could be paid from.

A website, BlueOnBlueForces, has been set up which claims more than 80 servicemen could no longer access sums ranging from £1,000 to £12,000.

Mr Russell said he suspected Colchester troops on a six-month tour of Helmand were among those affected. He claimed the MoD had a moral responsibility to help those affected, and said he would table Parliamentary questions about the collapse today.

He said: “There has got to be some form of MoD action by virtue of the fact that they were operating out of old MoD offices.”

Mr Russell said he had been impressed by the operation when he had visited the firm a few years ago.

He said: “I was very impressed with the set up and how they helped serving soldiers onto the property ladder.”

An MoD spokesman said: “The MoD cannot reimburse any money individuals have lost as a result of a private company going into administration.

“We will provide advice and support to individual soldiers to minimise the impact. Any affected individuals should contact their chain of command.”

No one from Blue Force was available for comment.