HSBC managed loan & Help with Joint and Several agreement

[Disco Dave]

Hi Guys

Don't know if this is right area but, here we go.....

Firstly thanks for all the helpful posts £60,000 of unsecured debt in default and 6 years down the line a clean credit history......

 

A friend has an issue he needs advice over:-

 

Some time ago his limited company got into trouble.

He was supplying the banking sector and when the banks crashed his customer base disappeared overnight,

he mistakenly paid off his creditors leaving a overdraft of around £20,000.

 

The bank could see he was in trouble and asked for a second charge on his property

when his partner refused HSBC called him in and sold him a managed loan to pay off the overdraft.

 

He maintained payments till last year form his own pocket as the business wasn't trading in any way.

The current balance is around £4,000.

 

His new accountant looking at the situation suggested desolving the company and this was done,

at this time he wrote to the bank explaining the situation and notifying them of financial hardship,

since then all they have done is tried to bully him into payment.

 

He believes the original loan to have been mis-sold as affordability checks would have clearly shown

he had no income (after all this was why he had been called into his branch),

 

 

also the loan wasn't offered it was thrust at his as a no option situation.

We have been through the financial ombudsman route but because the company doesn't exists

as a legal entity they can look at this!!:mad2::mad2:

 

What everybody missed was a Joint and several agreement, that he doesn't recall signing let alone having explained.

 

This was signed by another Director and himself,

he doesn't know the whereabouts of the other director having fallen out several years ago.

 

The bank have now placed it to a debt collection agency

who are attempting recovery of this business debt under the terms of the joint and several agreement.

 

We have done a SAR and they do have the J&S

although HSBC have admitted that they can't at this time produce the original loan agreement.

 

My Questions....

 

1/ As this is a business debt, are they able to mark his personal credit file?

 

2/ it is my guess that the J&S although legal is a civil matter

and a court ruling (judgment) is required before his personal credit file can be marked?

 

3/ Is there any useable defence against the J&S?

 

4/ Being that he has personally re-paid 75% of this loan from personal funds

could he tell them to get the rest from the other director who signed the J&S?

 

5/ Can we use the lack of loan agreement to default HSBC

and stop recovery in the same way as we would for a CCA?

 

6/ Could any of his personal assets be at risk, without this going to court?

 

Thanks guys, i know you will come through

 

Regards

 

Dave

[dx100uk]

if they cant find the signed agreement it will make things better for him yes.

 

 

as for these managed loans.

yes they were forced on lots of people

I've put you in the HSBC forum

lots of threads on managed loans to read here.

 

 

as for the credit file

if its already dropped off

or has never shown

it cant come back. to harm him

unless they try and get a CCJ and win.

 

 

is the loan still owned by HSBC

or have they sold it on to some fleecing DCA?

 

 

dx