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Hi All, looking to a bit of advise. My Limited company is now insolvent. I am being per sued personally from a couple of trade creditors. THEY SAY I SIGNED A PERSONAL GUARANTEE WHEN I OPENED A TRADING ACOUNT. I was the managing director and signed the account forms in that capacity. They are pursuing me personally. What do i do and are they right to pursue me ?

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If you signed as MD rather than personally, they may have a problem, as you signed in your capacity as a director.

 

Have you asked for a copy of the agreement?

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009

 

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What does it say? Can you scan and post?

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009

 

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he goes.

Credit Guarantee - To be signed by the owner / director / company secretary of the company applying for credit

in consideration of your agreement to supply goods to the applicant company on credit, we the undersigned being owner / directors of the company jointly and severally guarantee payment of all financial obligations to ************ Company and its subsidiaries and successors including financial obligations arising from any increase in credit limit granted by ********** company or its subsidiaries and successors from time to time following review of the applicant company's account.

 

i Signed and dated this.

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That does not look like a personal guarantee to me. Looks like a guarantee signed as a director. That is a terribly drafted clause if it is meant as a personal guarantee.

 

It is clearly designed to be signed by a company executive. Legally, I doubt a single director could sign on behalf of other directors without their express permission anyway, especially to give ‘joint and several’ undertakings. Most companies’ articles would forbid it.

 

Seriously flawed, IMO.

 

Hopefully some other opinions will come along soon.

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009

 

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A personal guarantee is exactly that – it has no relation to your position with the company, but as an individual.

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009

 

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Thanks for thoughts. I will seek legal advise on this. It is a cost a could do with out as i am now un-employed. The particular Builders merchants involved have sent me personal letters regarding the PG even though my company was still trading at the time.

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HI OTE,

 

This sounds like a Travis P Credit App.

 

I had to fill one in on behalf of company.... got to this point, gave them a call

 

and was told I would be signing as application and PG.... get stuffed i told them.....

 

We went elsewhere....

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?319881-Personal-Guarantee-Problem/page2 as an example...

 

Don't think this has been tested in court yet...

 

They are bunch of sharks, would love to see that term tested in court....

 

Good Luck....

 

PS This is my Personal censored opinion, the 1st was a lot harsher.....from my pov, we are now putting 50k PCM with another company, funny enough, I didn't sign in Personal Capacity

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Thats correct numbers666. I have 2 other PG's from 2 other builders merchants along the same lines. One of them is a 4 line guarantee and it is binding my estate to the PG. I will fight all 3 in court if i have to. Does anybody have any views on the matter. I was under the impression a PG should be an individual document and witnessed by a legal body. If anybody else out there has a view on this let me know.

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  • 2 weeks later...

Hi All, i have had Travis Perkins advise me there will be a statutory damage issued to me. About the PG i have with them. (apparently) Can anybody out there give me some advise on how to defend this in court ?

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Did you seek legal advice as you said you would?

 

The crux of your defence is that you believe the personal guarantee is not – as it was signed in your capacity as a director.

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009

 

If a Cagger helps you, click their star. Better still, make a donation however small, so that CAG can continue to help others.

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I have used arguments successfully on the link that numbers666 put up earlier.

 

 

The problem with this one is that it is clearly headed "Credit Guarantee" and you cannot argue the misreprentation angle on this as it is clearly headed and in bold.

 

 

As previoulsy advised you need to argue that you signed in a personal capacity and that the terms of the guarantee are unreasonable.

 

 

I spoke with a lawyer last week about this and he said he beleived that I had been lucky with the results I had previoulsy and if they had got in front of a judge I would have lost

- his argument was 'it is was it is a guarantee and you signed it'.

 

 

We are also seeing the same thing come up in Court with Judges in relation to credit card application forms.

 

 

Even though they may not strictly adhere to the correct format under the CCA1974 you signed it so therefore you owe the money!

 

 

The laws and ass and so are lawyers.

 

 

Personally I would negotiate with them and offer30-50% over 12 months

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  • 1 month later...

I applied for the stat demand to be set aside. I received a letter from the County Court saying the District Judge will look at this case. OK Thats fine with me. Anyway this tea time i received an email from the Supplier saying they want me a sign a consent form so that the application for setting the demand aside is withdrawn. By the way the consent form is a word document which a 12 year old could knock up. Very professional.

 

It seems clear to me that TP do not want this to go to court.

 

Anybody out there got any thoughts on this ?

 

Apparently there is a court hearing at the end of this month. I have not been notified about this.

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What does the consent form say?

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009

 

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BY CONSENT it is ordered that:-

 

1. The Respondent agrees to withdraw the Statutory Demand dated 14 December 2011 issued against the above named Applicant.

2. The hearing listed for 20 February 2012 at 11.30am be vacated.

3. Each party to bear their own costs.

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This is the email they sent.

Dear Sir

 

We write with regard to the above hearing and following receipt of your Application to Set Aside the Statutory Demand returnable above.

 

We have considered the contents of the letter you have submitted in support of your Application to Set Aside the Statutory Demand. In view of the issues raised by you we consider that this matter is not suitable for the Bankruptcy Court and should be dealt with by way of County Court proceedings in the event that an amicable resolution cannot be reached.

 

In the circumstances, we would agree to withdraw the Statutory Demand issued against you, subject to each party agreeing to bear their own costs. We enclose herewith a draft Consent Order for your approval and we would request that you please sign and return the same to us, we will then file the document with the Court and request that the hearing listed above be vacated.

 

If you have any queries in regarding this letter please contact the writer.

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Except that they should pay your costs!

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009

 

If a Cagger helps you, click their star. Better still, make a donation however small, so that CAG can continue to help others.

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I wonder if having this SD struck out (rather than having it withdrawn) would hinder their ability to take court action?

“The industry is rotten to the core, whether it is in-house recovery and collection, or where agents are used, or where the debt has been sold.” Andrew Mackinley MP, House of Commons, 22 April 2009

 

If a Cagger helps you, click their star. Better still, make a donation however small, so that CAG can continue to help others.

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