£100K Debt

[GuidoT]

I am trying to improve my negotiating position with the bank, I personally guaranteed a bank overdraft for a firm and the company failed, leaving me with £100K of personal debt.

 

This occurred about 3 years ago and for the past 15 months I have been paying off £1K a month and the bank has been content with this.

 

But it is time to negotiate with them again and I want to them to agree not to add to the debt charges and further interest.

 

Does anyone have anything specific that might strengthen my negoitating position, i.e. link to BCOBS stuff or similar that I can quote to the bank.

 

Thank you in advance.

[robcag]

Probably not much help, but I read a post from another CAG member earlier today who had also fallen foul of a personal guarantee. When he checked his guarantor agreement he saw a clause which limited his liability to less than what he had already paid out!

 

Here's the thread; http://www.consumeractiongroup.co.uk/forum/showthread.php?366603-HSBC-debt-sold-to-Robinson-Way(3-Viewing)-nbsp

 

Rob

[twofoot]

You need to see a copy of the document that makes you liable. Without it you are being cash cowed. If you have it post it up minus your personal details etc. If you don't have it I suggest you get a copy pronto.

[GuidoT]

I am not looking for advice relating to the document itself, been through that already, I only need assistance confined to the charges and interest freezing.

[Bandit127]

Have you got a copy of the agreement from them recently then? To replace the original you lost yesterday?

 

Does it authorise the interest and charges that you are currently being debited with?

 

If it does you might want to get it defaulted. Stopping paying or reducing to £1 a month will do that.

 

Otherwise I would do your homework on how much your expenditure has increased recently and how much less you can afford. If you can - conduct the negotiation in writing.

 

If your credit rating is precious then ignore the above and put an excercise book down your trousers...

[Old Cogger]

Might be of help, if not google and see what comes up??

[Guest]

would the Lending Code be of any help eg re financial difficulties and concessions/interest freeze? http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

Edited September 26, 2012 by Ford

[GuidoT]

Have you got a copy of the agreement from them recently then? To replace the original you lost yesterday?

 

I think you must be getting me confused with someone else!

[GuidoT]

Might be of help, if not google and see what comes up??

 

I looked at these and struggled to find my around them and anything specific on interest freezing.

[robcag]

Have you got a copy of the agreement from them recently then? To replace the original you lost yesterday?

 

I think you must be getting me confused with someone else!

 

I think that was meant as a rhetorical (not sure if that's the right word) question/suggestion.

 

i.e. have the bank still got a copy of the guarantee agreement should they need to enforce it? Only one way to find out .....

 

Rob

[GuidoT]

I see robcag, been down that road already, just need assistance with freezing interest.

 

Defaulting is not an option as the debt is secured on other properties that I do not want them to force a sale on.

[robcag]

How recently have you asked for and been provided with a copy of the guarantor agreement? It's just possible that if this was a while ago then they may not have one at present, bearing in mind that some of the banks have been particularly inept at retaining documentation in the past.

 

Sorry for sounding repetitive, just trying to help.

 

Rob

[GuidoT]

No problem, yes I have it and a lawyer has looked at the agreement, we have some angles on that and I am comfortable that is covered.

[robcag]

Yes Guido, both Bandit127 and myself I understand that you have a copy of the agreement, but as you haven't said otherwise, you've probably had it in your possession for some time, maybe it's the original copy you received at the time of signing.

 

The question that was asked was "how long since the bank provided you with a copy?"

 

Although you have your copy they may not have theirs, so if your paperwork was to be accidently shredded today and you needed to ask the bank for a copy of the signed agreement would they have the signed original in order to be able to provide such a copy?

 

I'll leave it at that.

 

Rob

[GuidoT]

I understand thanks.

[Mike_hawk]

Hi Guido

 

Really not sure what to suggest beyond a time order perhaps, assuming its regulated and the securities are correctly stated within the PG it may be an option. My only concern would be possible costs exposure if the application fails.

 

Is the current default rate of interest charged simple or compound?

 

Can't think of anything that would be of use in leverage for an informal negotiation.

 

Which bank is this?

[GuidoT]

Changing my mind, can someone link me to the SAR template please.

Edited September 27, 2012 by GuidoT

[GuidoT]

I found this:

http://www.consumerwiki.co.uk/index.php/Subject_Access_Request

 

I think the second letter is most suitable, unless anyone can advise me otherwise.

[Mike_hawk]

It's the template I always use now, unless there's anything specific you're looking for that you think may speed up the response. Having said that it can sometimes be counter productive as most banks tend to 'lose' specific data if you give them the slightest indication of why you need it.

[Guest]

quite. eg, in one sar cred said no recorded calls available after 3 mths (luckily for them! and they did the 3 mths back from end of 40 day limit!). cf in another sar case (same cred, at around same time) they told a cagger no recorded calls after 6 mths!

Edited September 28, 2012 by Ford

[lookinforinfo]

Guido, you are not in a strong negotiating position as you probably know already. They know they have security for the debt. The only thing I can see where you might have an edge

is if you can pay off the debt quicker than the six and a half years or so outstanding. Then they might consider a reduction in the amount for a quicker return of their money.

 

It will be hard to get them to waive the interest and charges when they are holding that much collateral from you. That being said, it cannot hurt to ask and point out that you will be

able to pay them off quicker without the added burden of the extra costs. It might help if you could pay a larger monthly amount. Obviously you couldn't do that if you are having

problems maintaining your current payments.

Then you could try appealing to their better side by explaining you are having financial difficulties and would appreciate them removing the charges and interest from now under

BCOBS though I doubt they will agree to doing it till the debt is paid off.

[GuidoT]

I forgot about this thread.

 

Various events unfolded, that led to my Business Manager becoming sacked and a whole load of revelations regarding his misconduct then followed, that I then took advantage that improved my negotiating position no end.

 

I just think the bank did not want their dirty laundry washed in public so they settled for £20K (of £150K in the end) a few months ago. A good result by all accounts.

Edited September 24, 2014 by GuidoT