Small Business (Liquidated) vs Lloyds

[zincoxide]

I'm helping out a friend who owns a small business to claim back his personal bank charges, but I then found this forum and am going to try to get back charges on his current business account.

 

However, after speaking to him tonight, he was a Director for a Scottish company until it was liquidated in March 2006. At that point in time, he and his wife had become personal Guarantors for an overdraft of £12.5k with Lloyds TSB. They missed a couple of payments and the debt was sold to Wescot who they paid off in full. When the business was liquidated so was the bank account which they have no statements for and have been unable to get details from the liquidators.

 

What I'm wondering is, could they still try to claim back the charges applied by Lloyds to that account? And if so, how far could we go back and where on earth do I start?!

 

They have no claim against Wescot as they did not add any interest or charges.

 

I've no idea what the rules are surrounding businesses especially a plc or ltd - so really need some direction on where to go with this and what information I will need in order to progress to a claim?

[elsinore]

 

What I'm wondering is, could they still try to claim back the charges applied by Lloyds to that account? And if so, how far could we go back and where on earth do I start?!

 

 

Hi zincoxide.

 

The short answer is no.

 

LTSB's contract was with the limited company. A claim would have to be made by the limited company and any sums payable by the bank would be made to the limited company. As the company has been liquidated, the only person capable of bringing a claim is the liquidator. Any proceeds from a claim should then be disbursed to any creditors of the company.

 

The only situation whereby your friend could benefit is if he was the only remaining creditor (after the liquidator had paid himself his fees)!

 

Els

[zincoxide]

Great succinct answer - thank you. Now I can get on with trying to get back the charges from his current business account!

[andrew1]

Hi zincoxide.

 

The short answer is no.

 

LTSB's contract was with the limited company. A claim would have to be made by the limited company and any sums payable by the bank would be made to the limited company. As the company has been liquidated, the only person capable of bringing a claim is the liquidator. Any proceeds from a claim should then be disbursed to any creditors of the company.

 

The only situation whereby your friend could benefit is if he was the only remaining creditor (after the liquidator had paid himself his fees)!

 

Els

 

 

What would you say then if the Director had a Directors loan in place to finance the company? Would that then change the equation with regard to claiming charges from the bank from the Liquidated Ltd Co..?( otherwise I'd agree with you and sometimes it's best leaving these liquidated company accounts alone - stirs up a hornets nest!) However, I too had a company liquidated some years ago and that had a high rate of charges applied over the years just due to the very nature of our cash-flow - I have a pal who ran one account (Ltd) with AIB with over £11,000 worth of charges when I added them all up.. It was a very small business and they were ruthless, he closed the company as a result, it just ceased trading rather than go into liquidation and eventually struck off, but he took a series of Loans to prop the business up as a result so effectively the monies should be his...Now I believe, that if you are in that situation as sole Director and can prove the loans were related to the charges then there is a possibility of reclaiming....but it won't be easy.