HSBC chasing old debt for a closed limited company

[Aimienice4u]

Hello all, Need some information for my dad...

 

He was a director for a limited company but the company had money problems and ceased trading and has been closed down.

 

HSBC are chasing him for an outstanding debt for an overdraft he had with his limited company. The Debt has now been sold to a debt collector who is now harrassing him.

 

Can someone tell me if the director ( my dad ) is liable for the debt, or the limited company itself is liable?

 

Many thanks

[renegadeimp]

SInce the debt has been sold on, it's 99% certain theres something wrong with it.

 

When did the account close? How much was it? Have you statements of accounts to check for charges/interest?

[brassnecked]

Which debt collector is this, and do they claim to have a CCJ?

[BRIGADIER2JCS]

Was the account covered by a directors personal guarantee?

Was this a voluntary liquidation?

 

When was the actually account closed?

[Aimienice4u]

The company ceased trading January 2011, He stopped getting statments then, The Agency is Wescot service LTD-HSBC, No CCJ has been given as of yet. But they are threatening Baliffs

 

thanks

[Aimienice4u]

Was the account covered by a directors personal guarantee? NO

Was this a voluntary liquidation? NO , just ceased trading

 

The debt is for £4138.76

[BRIGADIER2JCS]

Bailiffs CANNOT be instructed until there has been a CCJ and you have failed to comply with the order the judge made, so a long way before this can happen, unless Westcott have bought the debt the cannot start court action only the bank can.

 

You need to make a subject access request under the Data Protection Act 1998 to NW they will have to supply all data they hold and you can see how much of the debt is made up of charges.

[brassnecked]

They cannot send bailiffs, yet but if they obtain a CCJ, it will likely be transferred up to the High Court as it is over £600 for a writ of fi-fa, and a HCEO will then be sent, whose fees are the stuff of legend in their amount and inventiveness. Hopefully ploddertom or wonkeydonkey will look in as they are the experts as far as HCEO are concerned.

[Aimienice4u]

Right ok will print out a subject access request, I don't think wescot have brought the debt as ive just re-read the letter they say

 

" We have been instructed by our client to recover the above outstanding debt"

 

so i assume the debt is still with HSBC, so is my dad actually liable for the debt? because if is he i will ring HSBC on his behalf and try and sort out a payment plan and try & bin off wescot. I would have rung them sooner if my dad had told me about the letters unfortunatley hes getting on and retired ( because of illness) and push his debts to the back of him thinking the debts sink along with the company.

 

Thanks

[BRIGADIER2JCS]

Ok SAR to the bank with stat fee of £10 addressed to the Data Controller.

[marmaris30]

The only way they can enforce this is to get a CCJ. Talk of bailiffs is irrelevant before that (apart from Business Rates - but this is a bank debt anyway). Since the company has no assets (and possibly even been wound up?), the DCA is trying it on with your father as an individual.

 

The only way they could get a CCJ against him would be to prove some kind of negligent or irresponsible behaviour as a director, such as excessive money taken out etc. Firstly, I'm sure that none of that applies here and secondly, the DCA will have a hard time proving it without HSBC's help. Since HSBC will have considered the matter closed on assigning the debt, and it is said that debts are often sold on with minimal information, I doubt that argument would get very far.

 

The lack of any guarantees helps your case enormously. Make sure that it wasn't secured on a business asset either.

 

Watch out though as they might try to spring a claim form on him anyway, in the hope that he ignores it. If this happens then make sure the claim is defended!

[Aimienice4u]

After speaking to my father just now, He has just informed me that this is for an overdraft as stated and that it been £4000 from the start so only an extra £138.76 as been applied, There is no assets in the company either nor any guarantees, the company was running for 10 years plus.

 

He also isn't a homeowner etc so has nothing to give etc.. Is it advisable to ring HSBC with a payment plan? Or simply ignore ( unless a claim form arrives) as he isn't actually liable and the limited company was?

 

Thanks

[renegadeimp]

Everything is to be in writing. Stay off the phone.

[brassnecked]

Everything is to be in writing. Stay off the phone.

Exactly, only phone if you can record the call, if Wescott phone record the call, it may be HSBC has written this off, and Wescott are trying it on.

[Surfer01]

If the debt was for an overdraft for the limited company and in the name of the limited company, they cannot touch your dad unless he acted as a guarantor for the limited company's overdraft. You need to check on this before firing off a SAR.

[brassnecked]

If the debt was for an overdraft for the limited company and in the name of the limited company, they cannot touch your dad unless he acted as a guarantor for the limited company's overdraft. You need to check on this before firing off a SAR.

No admissions of liability at this stage, as if limited company and NO Personal Guarantee, Wescott are up the creek unless he admits liability or offers to pay imho Otherwise the debt may have died with the company, unless you resurrect it

[ims21]

As has been said, if this is a Limited Company debt with no personal guarantees etc then your father is not liable (subject to the proviso in post #11 above re negligence by the directors etc).

 

Any court claim made against you father could be easily defended as the claim must be against the company and not him personally.

 

No point in a SAR as they do not apply to Limited Company records.

[wonkeydonkey]

Hi...you do not say when the overdraft came into being or how long it is since your father ceased trading...both q's are in need of a reply.

 

I would be inclined to agree with ims21 and save yourself £10 at this stage..gather the facts as you have them before making contact with Westcott or HSBC from what you say the debt has not been bought by Westcott, you need to search paperwork to see what processes have been undertaken so far??

 

I would hazzard a guess the letter you refer to states 'may' be passed to a bailiff as opposed to having been passed to a bailiff?

 

 

WD.

[tomtubby]

If you were to call this company there is no "paper trail". It is vitally important that you WRITE to the company.

 

The following is merely suggested rough wording:

 

 

Dear Sirs,

 

Reference number: xxx

 

I am writing this letter on behalf of my father Mr Jo Blogs. My father is elderly and is not in good health and for this reason I am writing to you on his behalf. Please see attached Letter of Authority.

 

From your recent correspondence it would appear that your company are seeking payment of £xxx from my father on behalf of HSBC Bank in relation to an overdraft facility for a company by the name of ABC Electrical Ltd.

 

My father was a Director of this company but unfortunately like many other company in this recession it ceased trading in January 2011. There are no remaining assets of the company. My father has advised me that the overdraft facility was unsecured and accordingly, he cannot be held liable for this debt.

 

Given my fathers ill health and the stress that this matter is causing to him I would be grateful for confirmation that you have received this letter.

 

Yours faithfully.