overdraft with barclays commercial banking - Statute barred personal guarantee?

[Mminionator]

Hello everyone,

 

Please be nice, I appreciate this trouble was something that happened when I was not as smart around money. I have learned my lessons and now doing well.

 

The problem I have is a company I used to be a director of.

 

My partner left the country and me saddled with the personal overdraft guarantee of £2000.

No other debts.

 

It is difficult to remember all the details, but I remember it was for an overdraft with barclays commercial banking.

 

I had to dissolve the company, appropriately notifying companies house.

This all happened without a problem.

Company dissolved as of January 2013.

 

A year or so later I was told I was liable for that money via letter.

I ignored it - I know, head in sand not a good idea, but just didn't know what to do at the time.

The letters stopped eventually.

 

Now I've had a debt collection company get in touch recently out of the blue.

But, given this occurred that long ago,

and I never communicated with the bank after dissolving the company about this debt,

is this debt still enforceable?

 

Would really appreciate help with this.

 

Thanks,

 

 

M

Edited February 4, 2018 by Mminionator

[renegadeimp]

ignore the dca unless they provide proof or a letter of claim.

 

When was the last payment you made to the debt?

Which DCA is it?

[Mminionator]

Hi

 

I haven't made any payments to the bank.

 

The accounts were all closed and I ignored requested to pay.

 

I don't have the DCA letter to hand so can't say who they are at the moment.

[renegadeimp]

SO what was the PG for, when was payment originally demanded, what were the terms of payment?

Can you advise on dates taken out etc.

 

We need more info to advise properly. Business debts/contracts can be different to consumer ones, so we need info.

[dx100uk]

moved to the Barclays forum

just remember, a DCA is NOT A BAILIFFS

and have

ZERO legal powers.

 

dx

[Mminionator]

Hi

 

Apologies if I was not clear.

 

I had to personally guarantee the overdraft for the company bank account.

 

I do not remember the details of the agreement, but just that if the current account defaulted then I would be personally responsible.

 

This was signed in the bank.

 

The guarantee was taken out perhaps around 2011. Account closed in 2013 after I voluntarily dissolved it.

 

No chase from bank until sometime afterwards, perhaps a year.

 

I made no contact with the bank or any other party regarding this amount during that time.

 

Now a DCA is pursuing me for it over the past few months out of the blue.

[AndyOrch]

The creditor's claim against the guarantor under a guarantee is a claim in contract. Where the guarantee is not made by deed, a claim to enforce the guarantee may therefore not be brought after the expiration of six years from the date on which the cause of action accrued. Where the guarantee is made by deed, the period is 12 years from the accrual of the cause of action.

 

Was the account in the company's name or your personal name ?

 

Andy

[andrew1]

Hi, you said there was no other debt, but was there a debt which created an indebtedness to the bank?

 

There must have been some kind of debt, otherwise they wouldn't have needed to call-in the Guarantee.

 

If you closed/dissolved the company were there any disclosed debts at that time?

 

If there weren't, tell them to go take a hike! Looks to me though as if the bank believes there was. I'd get that clarified.

[Mminionator]

Hi

 

The figure they're asking for is for the overdraft amount. I remember the amount and it matches exactly.

 

I do not remember the balance of that account because it was so long ago. But it would have been within that overdraft limit.

[slick132]

Hi Mm and welcome to CAG

 

As per post #3, let us know who the DCA is when you can but don't reply to them at this stage.

 

[Mminionator]

Hi

 

I found one from last year from Robinson Way.

 

Thanks,

[dx100uk]

Wha'st a DCA doing with a business debt?

[Mminionator]

What should I do?

 

Does it make a difference that a DCA has it?

[dx100uk]

they cant buy business debts so BC must have sold it on as a pers debt ref the Guarantee you signed

just to check - RW doesn't state a client do they?

[Mminionator]

they cant buy business debts so BC must have sold it on as a pers debt ref the Guarantee you signed

just to check - RW doesn't state a client do they?

 

HPH2 Ltd (ex lloyds commercial) is what it says.

 

Also, my name is spelled incorrectly, does that help my case?

[andrew1]

This DCA has not stated by any chance that 'they' now own the debt do they? RW are also Debt Purchasers who used to buy debt at £silly % of the debt value.

 

On the other hand, there may be some leverage to negotiate some kind of settlement if you have no assets they can come after.

 

There was a time when I flatly refused to deal with DCA's and insisted I dealt directly with the original creditor. If you find after receiving the advice on here you have to face the music and are responsible for this debt I'd certainly not have anything to do with RW who are/were a notorious bunch at the best of times for chasing people at all hours.

 

I cannot go into too much detail on here, but I have successfully negotiated some significant write-offs with creditors for a couple of friends of mine (on cards and loans) based upon their personal circumstances and I have been pleasantly surprised by the attitudes of both banks and DCA's to the tragedies and trauma's these people I was doing this for had been through.

 

Remember the cost to the creditor of collecting or using DCA's or solicitors is weighed up against their opinion as to whether they will be successful chasing you. They'll have done all the searches of your credit file to see what you're worth so be honest with them and if you do find yourself in the position of having to settle this, try and negotiate a deal around what you can afford, but keep it sensible. Then spread any payments over a short period keeping in mind you can only do what is affordable.

 

Directors Guarantees or Guarantees for something like you have done are not to be treated lightly sadly and far too many people do them without realising they can be liable later down the line when everything goes belly-up. I've seen a guy lose his home over one back in the 70's in a company I worked for and it wasn't pleasant.

 

Being statute barred may be an option, but that depends on dates which someone else might help you with.

 

I wish you luck though.

[renegadeimp]

If robbers way are involved, then the debt is junk anyway

[Ethel Street]

You say you closed the Barclays account in 2013 when you dissolved the company but if the account was overdrawn then I'm surprised Barclays let you close it.

[dx100uk]

HPH2 Ltd (ex lloyds commercial) is what it says.

 

Also, my name is spelled incorrectly, does that help my case?

 

RW are hph2 [hoist portfolio2 ltd]

 

interesting they DO state its an ex Lloyds commercial debt = a business debt.

 

don't think they'll get far with this.

[Mminionator]

So how should I deal with them?

[dx100uk]

let it run

comeback if you get a letter of claim

 

dx

[andrew1]

IF RW have bought this debt from the bank as I suspect, then you should have received a Notice of assignment. Check all your paperwork and line it up ready. As DX say's let it run and see what they do. Then come back. Don't worry - that's the main thing!!