Made a huge faux pax business account - personal claim

[jordylass]

While on holiday last week expecting to return to a cheque I received a letter from the court that HSBC will be defending the claim, and a letter from HSBC solicitors that

"You have no standing to bring this claim in a personal capacity. The account in question was not held in your name but in the name of a limited company, XXXXX. This is a seperate legal entity.

In the circumstances please confirm that you will discontinue your claim in the next 7 days. Your failure to do so will result in us filing a defence together with an application to strike out your claim. We will also apply for an order for costs against you."

I have a few questions.

1. The business was mine, I was the only director, and it ceased to trade March 04, can this none trading business make a claim against HSBC?

2. If no 1. is possible, do i discontinue the current personal claim and submit a new business claim?

3. If I go the route of no 2. and I win and get a payment to "the limited company" what can I do with it, as there is no bank account for that name any longer?

I did read the FAQ, but thought as I was the director and the business was closed I would be able to make the claim in my own right.

[Switch]

Hi jordylass

I am pretty much in the same boat as you but with another bank.

Yes HSBC are quite correct with what they are saying to you. However, my understanding is that if you should so happen to have an assignment of rights from from your Limited company that should clear that matter up.

Basicly a letter on headed paper saying that XXXXX Limited assign all rights with regards to company bank account number XXXXX held with HSBC to jordylass.

Be careful though if the Limited Company although no longer trading owed HSBC money and your limited company assign those rights to you HSBC may then be able to chase you for any outstanding monies owed.

I may not be 100% correct with that, hopefully some one will come along soon and confirm my understanding of this.

Good Luck

Switch

[jordylass]

Thanks Switch, I really need to get back to them today, is it as simple as sending a letter to HSBC and their solicitors telling them of the change?

[jordylass]

I have been to see a solicitor this morning who I know have to pay £50 for his 'advice', on top of the £170 for moneyclaim this has me seriously out of pocket.

His advice to me was that if the company has been wound up there is nothing that can be done retrospectively, there can be no assignment of rights after the business has finished trading. If it has not been wound up then i should be able to make the claim as the director of the company.

He advised me not to carry on as the banks are not bit players and will not be beaten, to be wary of action groups, etc.

I'm not sure how I could have forgotten this, but I've just searched companies house and realised that I sold the company so it is still active and has a new director, so i'm basically screwed as I assume any return from the bank would belong to the new owner.

[BankFodder]

I'm sorry that I didn't come accross this earlier.

If the company is wound up then you can't do anything and as your charges were incurred by the company you shouldn't have sued in a personal capacity.

It's a very small amount and the new owner of the company could probably sue for it, he won't bother and I think that you will have to drop it. You should probably count yourself lucky not ti incur the wated costs of the bank's litigation preparation. I am sure that they could easily justfy a few hundred in lost expenses.

Bad new, sorry.
As fas as your solictor's comments on action groups - you have to look at the hundreds of successes which have been reported over the last 3 months. We estimate that it may have cost the banks £4m so far.

I'm afraid that what is to be learned here is to make sure that you understand very thoroughly what you are doing. Did you post the whole story before you started? I hope that you didn't receive any incorrect advice from any of our mods. Normally they come to admin for advice about these kinds of stories
To read around and to make sure that you are fully informed befor beginning.
This is not a get-rich-quick scheme. It is a serious undertaking.

I don't know why you preferred to spend £50 on a solicitor when the answer could have been obtained here for free before you began your claim

[jordylass]

Thanks for the response.

I did read this site and others extensively before starting my claim, but I wasn't thorough enough in thinking the whole thing (re the business aspect) through.

I only made the appointment with the solicitor yesterday to get in to see him today after not having a response to my query on here.

The total amount of the claim was over £2000 but I know that the new owner isn't trading and don't think they would be interested in pursuing it.

An expensive mistake. Now can anyone tell me how I stop my claim?