HSBC BBLS debt - now moorcroft

[DieselMike]

Hi,

My Ltd company took out a BBLS loan back in 2020, butunfortunately a year later was made insolvent due to market challenges - The BBLS loan was used in compliance with the Loan criteria and best business practices.

As the company director I requested my accountant submit a DS01 to companies House to close the Business and informed HSBC to close the business account.

HSBC then raised an objection with companies house which stopped Companies house from closing the company.

HSBC have now passed the outstanding balance of the BBLS onto Moorcrofts Debt Recovery, who are seeking full BBLS repayment of the outstanding balance from myself personally.

I have engaged the Financial Ombudsman, however have little confidence in their abilities to properly support my case.

Question - Can HSBC force the responsibility for repayment of a Ltd company BBLS debt onto the director, when the Company has ceased to trade and no fraudulent activity has taken place?

thanks

Dieselmike

[Nicky Boy]

@dx100uk DX, I think this topic needs moving, not sure where to...?

[AndyOrch]

Welcome to the forum DieselMike

 

I have moved your topic to the HSBC forum. Please continue to post here.

3 hours ago, DieselMike said:

HSBC have now passed the outstanding balance of the BBLS onto Moorcrofts Debt Recovery

 

Not really passed on ( as in assigned or sold) but asked them to hound you I would be more fearful if they had passed it on  to your postman

Ambulance chasers don't go near a court room so ignore unless you actually receive something from HSBC Solicitors.

 

Andy

 

.

[Homer67]

Limited company so you can't be personally liable.

[DieselMike]

Hi Homer67,

am not sure that that is completly correct, am aware that should the Financial ombudsman deem that the monies have been used incorectly, then the outstanding balance of the loan can be passed onto the director.

 

[Nicky Boy]

4 hours ago, DieselMike said:

The BBLS loan was used in compliance with the Loan criteria and best business practices.

So, as long as you can show this, then the FOS shouldn't be able to "deem that the monies have been used incorectly".

[dx100uk]

did you sign a personal guarantee.?

thread title updated

dx

[DieselMike]

No - the BBLS are underwritten by the gov

can I ask whether anyone on this forum has had a similar experience?

[Nicky Boy]

@dx100uk

DX,

Here's the relevant FAQ from Bounce Back Loan website...

"lenders are not permitted to require personal guarantees for the Bounce Back Loan Scheme."

Looks like the OP may be in the clear?

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/#f14

 

[DieselMike]

nice one, really appreciated - I'll let you know how I get on with the FOS 

[dx100uk]

next time dont involve to FOS until you have too on a debt.

they could rule you owe it, and although they have no legal powers to make you.

it could put you in a rather dodgy position with HSBC.

[dx100uk]

 

[DieselMike]

Hi DX100uk,

my research has unfortunately identified that Sole traders are personally responsible for their BBL, so I would suggest trying to make a deal with HSBC around repayment terms.

[AndyOrch]

But your not a sole trader 

On 19/01/2024 at 08:48, DieselMike said:

My Ltd company took out a BBLS loan back in 2020

 

2 hours ago, DieselMike said:

so I would suggest trying to make a deal with HSBC around repayment terms.

That's your decision if and when HSBC decide to pressure you but given that they have passed it to Moorcroft they are not seriously concerned about the debt until such time they appoint a more serious DCA to come after you.

[Nicky Boy]

I was confused as well, but I suspect the OP is referring to the old thread that DX linked to Andy.

[fusionrox]

On 19/01/2024 at 08:48, DieselMike said:

Hi,

My Ltd company took out a BBLS loan back in 2020, butunfortunately a year later was made insolvent due to market challenges - The BBLS loan was used in compliance with the Loan criteria and best business practices.

As the company director I requested my accountant submit a DS01 to companies House to close the Business and informed HSBC to close the business account.

HSBC then raised an objection with companies house which stopped Companies house from closing the company.

HSBC have now passed the outstanding balance of the BBLS onto Moorcrofts Debt Recovery, who are seeking full BBLS repayment of the outstanding balance from myself personally.

I have engaged the Financial Ombudsman, however have little confidence in their abilities to properly support my case.

Question - Can HSBC force the responsibility for repayment of a Ltd company BBLS debt onto the director, when the Company has ceased to trade and no fraudulent activity has taken place?

thanks

Dieselmike

Hey DiesalMike, wondering how the progress going with moorcroft, could you give an update pls ? 

I have a similar issue and contacted by moorcroft for bbl repayments but am unable to repay it due to business didnt run for last 3 years. 

[lolerz]

@fusionrox please create your own thread by clicking the button at the top of the website