Unlimited Personal Guarantee

[stripper]

I hope this is the right place to address a point that has been niggling away at me for ages.In 1998 I entered into an Unlimited Guarantee for my Company.It folded in 2002.The amount left outstanding was about £6k.

There was never a DN issued and the debt was passed over to a DCA.No interest has been added and I agreed a token payment pm.

I am still paying an agreed amount pm but have not heard from the DCA for over 3years.However they are taking the money.

Would I be right in thinking that the Banking Code (Whatever) actually prohibits this type of Guarantee,as from what I have gleaned the Banks do not offer Unlimited Personal Guarantees (Not good practice!).I need to know how to handle this oddball.

Apologies if this thread is in the wrong place,Mods please advise.

Thanks

Stripper

[stripper]

Someone please throw some light here

Thanks Caggers

Stripper:D

[kiptower]

as its the weekend you may have to wait for a response, dont worry someone will pick up on your post shortly

[cerberusalert]

You should always be careful when giving personal guarantees. Where possible ensure that they only apply to specific debts or loans. A widely drawn guarantee could render you liable for all of the losses of the business. However, under the Lending Code, guarantees given in support of bank account borrowing must not be for an unlimited amount.

Providing a guarantee for your loan | Business Link

[cerberusalert]

It might be worth reading through http://www.opsi.gov.uk/RevisedStatutes/Acts/ukpga/1977/cukpga_19770050_en_1 and; http://www.bankingcode.org.uk/pdfdocs/BANKING%20CODE.pdf

[stripper]

Thanks Kiptower and Ceberusalert.

I have read and digested.Looks like I have an agreement that should not have been issued.

Funnily enough,the Bank when corresponding(back in 1998-2002) only ever referred to it as a Guarantee and never Unlimited Guarantee.

I didn't twig that one.

Any thoughts as to what my next move should be?

Thanks

[cerberusalert]

It might be worthwhile making a complaint to FOS & the FSA

FOS = contact us

FSA = How to contact us

[stripper]

Will do

Thanks