Thread: Personal Guarantee

Hi everybody - please accept my apologies if i have posted in the wrong area but hopefully i can get some help. I had a business account with Lloyds which had a loan of 12K and an overdraft of 4K, after about a year in to the 12K loan the business collapsed due to the ongoing climate. Lloyds contacted me and said that i has a personal guarantee on the business of 20K. I met my manager who lumped everything together and put it into a massive o/d of 22K !!with repayments of £250 a month ..however it was gaining interest of approx. £160 a month so it was going nowhere. I have now had a letter form Lloyds debt collection calling in the 20K guarantee. I have called them and they have asked me to put in writing my proposals but have no idea where to start.
As for me, i have managed to get a part time job with Royal Mail and wish i had done so earlier instead of chasing the dream..i am overdrawn by 6K have a personal loan of £16K and a cc of 10K.....i have never been so down in my life so any help is very gratefully received. Thankyou.

Hi - have now had a letter from Wescott? demanding £20K by feb 18th..any advice please. Thankyou.

bump

You could also write a letter to Wescott asking who they are and howcome they are in possesion of your personal details ,if they write back and say Lloyds ,ask who at lloyds passed on the info/,how are they holding info on you/ and with what right.Just delay tactics but also you should gain info.You cannot give money away to anyone that asks you to in a letter without proof.Hope all goes well

Hi - many thanks for your replies. I have managed to scan a copy of the letter and hopefully deleted all personal data and managed to get it to a size thats not too big. Any advice is much appreciated. Thankyou.

Hi - had problems with the image but hopefully it works this time. I really hope that there is a way out of this mess.

Thanks all.

HAd this letter today - don't know which way to turn now and am really worried, frightened.

And do not worry Some one will be along shortly .Try to get that letter up too

Hi,
Once again many, many thanks for your help and support. I will try and put the copies up again (hopefully larger).
I have been in contact with Wescot today and they state that all communication must be with themselves now and not their client(Lloyds). They said that they were looking to recover the debt and when i mentioned that i had asked for copies of the agreements from lloyds they said that they will forward them on to me. I asked about a Full and final settlement (though i did say i do not admit or deny the debt) and they said the figure they would accept would be £15,500.
I am not really sure how they work these figures out but would welcome any help and your thoughts.
Thankyou again.

Did you send a CCA request

Can i send a cca request for this? who would i send it to - Lloyds or Wescot?

Many thanks

You said you had requested copies of your agreements from Lloyds,can you say in what way you requested them ie 77/78 request.also how old would your agreements be

No - i asked for the copies over the phone & i have requested them again from wescot. Do you think i should 77/78 request them? If so do i send to Lloyds or wescot?
Many thanks

Please try and answer the questions above,also how did Wescotts get involved ,did you miss payments,Try to get info from them and and write only to them ,keep all letters from them and you.I think CCA them both just to get as much info.Write a letter as above asking how wescotts got all your personal details,make them work it .

Hi - thankyou for your questions and your thoughts.

I don't recall signing a personal guarantee and i have no copy, however wescot say that they have one so i have requested a copy. The 22K sum was put as an overdraft in the business account and i have a letter from the manager stating " I am happy to accept a monthly reduction from you of £250 under the terms of your personal guarantee in favour of the company. This should be paid into the current account no later than the 28th monthly commencing August 2009. In turn i have arranged for the loan account and the business credit card account to be repaid and a new limit has been added to the current account for you to service monthly."
I managed to make a few payments on this although it was becoming a struggle to meet. Then i began to question myself why i was accepting this as it was more than the said guarantee and i was unsure of the amount as it appeared to be made up of interest on interest on interest and was in no way beneficial to my situation.
Wescot became involved this year as the bank collections dept. wrote to me asking me to offer a payment arrangement, giving me 28 days to respond. I spoke to them on the phone and asked for copies of agreements etc. and they said that only my local branch could supply these. They were keen to get me to accept liability and make payments or make an offer of settlement, however with no knowledge of these matters i could not respond within the time frame and then it was handed to wescots and it is at the point we are at now with them promising to deliver the documents.

So,you had loan 12k and 4k o/d and they put it into a o/d of 22k something wrong here,hope someone better will advise you as this sounds like a con on Lloyds part