First post, so please go easy I have jumped in on this thread as it seems similar to my predicament.

I have a personal guarantee on a business overdraft with Barclays set up about nine years ago. The first agreement was for £14K and then it was topped up to £30K. Eight Barclays Business managers later over the first few years I am told by Barclays that the agreement should have been renewed two years ago.

They now want to turn this into a loan to give me 'security'. My last visit to the manager said that he could not find any signed agreement so I was in a position where Barclays could take everything away.

I have a great feeling as the PA was so old and for another amount plus their new 'stance' that they have not got any copy of this.

Do you think a Subject Access request will strengthen my position?

Any help or advice would be greatly appreciated.

Thanks

Anyone?

I've moved your post, renamed it and created a new thread otherwise you may be lost in someone elses.

If they cannot provide a CCA they will find it extremely difficult to take enforcement action, a SAR would be a wise move.

Thanks for this, if anyone has had a similar story with a Business Overdraft then please chip in.

Cheers

Hi,

Just a quick update. I have not heard anything back from Barclays, so my next step is a follow up letter. Is there such a letter template on the forums which ticks all the legal boxes please.

Many thanks

If they've failed to provide the CCA you could send this; http://www.consumerforums.com/resources/templates-library/86-debt-collectors/571-failiure-to-provide-a-copy-of-the-agreement-within-the-prescribed-timescale

Hi,

Thanks you for the swift reply. I have just had a look through that letter and it sounds just right. Thanks once again for the help, I will keep you posted.

Hi All,

Just a quick update.

I have received no follow up information from my bank since my earlier letters and there are three now. I have been advised to get a solicitors letter up together to force the issue once and for all.

Does anyone have an idea of how much this would cost?

Also, any good solicitors who could help me on this issue within this forum, any ideas would be gratefully appreciated.

Thanks

They now want to turn this into a loan to give me 'security'. My last visit to the manager said that he could not find any signed agreement so I was in a position where Barclays could take everything away.

This seems to be a stupid thing for the bank to say. They have ineffect admitted that they cannot prove that you personally guranteed the Overdraft. If your company is Ltd, they takeaway the OD, company folds, they lose.

As for a solicitor, costs vary, so be careful. If you do want to take this route. Find one who will give you the first 30 mins consultation free to discuss your problem. Do a lot of your own research prior, if in that meeting you know more than him. Walkaway.

Debs

Something else, before things get messy with Barclays, I strongly suggest you open a Parachute account with another bank. There is a possibility that as soon as you dispute this, they takeaway your facility, any payments in could be swallowed up in charges & admin fees.

Hi Debs, thanks for the replies.

I am going to send one more registered letter today then work on a solicitors letter. I had already opened another bank account, so thanks for the pointer. I am still a bit shaky on the fact that they could push for my house.

Thanks Again

You've done everything right Skywalker, guess why they wanted to push you into loan situation - because they are well aware they have no agreement and yours is a limited company, no personal guarantee, they can try but they won't be able to make a claim on the house.

Quick Update,

I had a bank letter advising that the Registrar of Companies had recently served a Notice of Intention to Dissolve my company. The bank wants advice on what happens to the bank accounts?

I still have not sent a solicitors letter, anyone know of a good board rep here who could act for a fee?

The bank will probably try and bankrupt me.

The bank will probably try and bankrupt me.

Is the business LTD ?

Debs

Hi Debs,

Yes the company is limited, so I am protected yes?

Thanks

With a Ltd company personal assets are completely distinct from company finances. Sometimes directors act as guarantors for loans, company vehicles etc so would be held liable.... which brings us back to your original problem, unless they have an enforceable agreement they are stuffed.

"Limited" liability.

The liabilities only extend to the value of the company.

You are not in anyway personally liable for your companies debts. They have already admitted that they do not have a personal guarantee for the business overdraft. You can walk away from this unfortunate situation, your personal assets are safe. The bank will threaten, & they will wriggle like mad, in the hope that you are ignorant of your rights. But, if they do find the gurantee within 6 years, they could come after you. Beyond that , its statute barred.

I had a bank letter advising that the Registrar of Companies had recently served a Notice of Intention to Dissolve my company. The bank wants advice on what happens to the bank accounts?

Write back to the bank, acknowledge that the company has ceased trading, and your understanding is that the accounts should be closed. If they require further clarification, they should contact companies house.

What happens next, Companies house put a notice in a major newspaper( Times I think), stating that your company will be struck off, are there any objections? If you have creditors, such as HMS taxes, they may object....not really sure how it works. But the bank accounts should be closed.

Debs

subbing

Thanks for the update Debs.

This is all still dragging on, the bank has called me 'once' to talk through the debt and assign it to a loan. I have not used the account for months now and we have two personal accounts with the same branch accruing weekly overdraft charges. I 'may' be able to bring those two back into the original overdraft facility with about £1200.

But someone also gave me advice before I saw yours, to not write anything to the bank. I told them that we had ceased trading and they said they would be back within a month, it is now nearly six weeks since that call.

If they had anything, they would have done something by now.

Debs, what is my position by writing to the bank and saying to close the account?, at least they won't be able to add the £2000 a quarter charges.

I have also run up a few credit card bills on my personal side to basically live through all this. My credit rating was a very healthy 970 out of a 1000 on Equifax, it has now plummeted down to 0 in the last week or so. So I am now getting letters from the card companies that my credit limits have gone from £15000 down to £3500.

What would be my position now in wiping all my debt with a personal bankruptcy?, so that would be the company overdraft debt and my personal bank cards.

Thanks All

As a quick update, the bank contacted me. They have asked me to put in writing to close the account and they will pass the account onto debt collectors. I stressed that it was a limited company and they said they will decide what action to take. No guarantee is in place, so 'how' can they legally pass this debt onto another party.

If they do, will it become a different entity with then becoming enforceable with the debt collector.

Last thing I want is a DC turning up at my house, any advice would be great on this please.

Thanks

If you have not acted as guarantor for any of the company debts all you have to do is tell them to 'go forth and multiply'.

If you have not acted as guarantor for any of the company debts all you have to do is tell them to 'go forth and multiply'.

Hi cerberusalert,

Thanks for the quick reply. But the personal guarantee for the facility was signed at a very early stage, the bank has now lost this, that is the main crux.

I originally signed the facility as a sole trader, which then became a ltd company with me as director. We hit a really bad patch with a supplier badly letting us down on a big job for our largest client. Client pulled job and work dried up through no fault of our own. My staff and I have worked for nothing for many months to rectify, but owing HMRC and overdraft to bank at limit.

If I write to bank with digital signature just saying company closed, can they close accounts, I am not agreeing to acknowledge the debt and therefore showing my liability.

Sorry, but I am really confused.

Thanks

Thanks for the quick reply. But the personal guarantee for the facility was signed at a very early stage, the bank has now lost this, that is the main crux.

Hello all

I have a new update, yes this is still dragging on. Companies House dissolved the company, the bank then got a bit more frantic with a few more calls and added a nice chunk of interest to the defecit.

I have now had a call from someone who 'wants to help me resolve the issue' at the bank, he is with the bank and is in Debt Recovery. I have said the company has ceased trading, there is no guarantee in place and after repeated requests nothing has been sent to show otherwise.

He said he will get me a copy, he did not have anything in front of him to say there is, which again points to 'they have lost it'.

He is sending me something to fill in on my outgoings, what I am doing for money etc. He asked what the house was worth and what was on the mortgage left.

He then said that if we could not work out a payment plan, he would have no alternative but to make me bankrupt through another avenue.

Then that would bring into play the house etc.

What do you think of that?

My hunch still is that if they had something it would be in front of him, plus all the other correspondence would have a copy of any agreement.

Is it right that these banks wait until the last minute to show their hand?

Has anyone else had any experience of this.

Thanks everyone.