Hi. I am a new user and would really benefitfrom any help and advice. Thank you.
My name is Ian, I am married and with my wifehave been directors of 2 limited companies for many years. Company A for 10years and company B for 5 years. Each company had its own overdrafts with thesame bank and were run simultaneously.
Our personal finances are a small mortgage, (40k)a small loan (2k) and a small overdraft (2k) all fully and properly servicedwith no failings or defaults at all. Indeed, these are still being serviced, ontime and as per agreement as we speak.
Company A's overdraft was in the region of20k and company B's was in the region of 10k. Both of these were secured onPG’s. During the bank’s good times, funds were often offered without beingasked for. Now with things having changed for the banks as they have, with theawful bad press they are currently receiving, the bank withdrew its support, inmy opinion, without due care and attention and without proper negotiations.This made the running of both companies impossible and company B was liquidatedat the end of January. With trading for both companies being predominantlyseasonal, the bank wanted to reduce the overdrafts at an alarming rate, at atime when historically, we have little or no income.
During the last negotiations with the bank Imade it clear that the removal of support at such a critical time would dountold damage to both companies’ finances and that of our personal.
Following a final phone call the bank it wasagreed that they would only take 2k and the rest later. This was never done andon 24th December the bank called in 7k from one account and wantedto take 3.5k from the other before any substantial income
Despite my protestations, the bank went aheadand withdrew its support.
As it stands, we are on a debt management programmewhere all personal credit cards and our personal overdraft (2k) are beingserviced by an agreed amount.
Our personal mortgage (40k) and personal loan(2k) are currently serviced and in order.
Without success, we have tried to makecontact with the bank to commence negotiations with a view to offering arepayment schedule for both the limited companies. It would appear the bank wouldprefer to put all accounts together in one pot whether they are in default ornot. This I am loathe to do. Indeed, I am meeting great resistance to preventthis. The fear of losing our home is making me and my immune suppressed wifereally very ill.
Satisfactory arrangements have been made forthe repayment of the personal overdraft, the personal loan and the mortgage butthe bank continues to harass for payment.
On the 11th January I instructedthe bank to cancel all standing orders and direct debits from all accountsuntil further notice and still they continue charge us for failed paymentshaving not cancelled them.
Despite continued efforts to inform the bankof our dilemma, they continue to absorb BACS payments from customers trying topay the liquated company in error. This is not showing on the bank statementsas this account is in the hands of the receiver. The bank has continued toinsist that it takes time to close the account despite the receiver havingcharge over it.
So, I am desperately seeking 3 separatepieces of advice to my issues, please.
Issue 1. The bank has prevented me fromcontacting a responsible person to discuss my unsecured company debts with and,I feel this is an attempt to secure a default allowing them to follow adifferent course of action. How does a default change the status of my debt andto what end?
Issue 2. If, as I believe, the reason for the bank trying to group myloans together is the fact that my good loans are secured and my bad loans arenot. How do I prevent the bank from doing this?
Issue 3. In view of my belief that the bankacted irresponsibly by removing the increasing overdraft when it suited themand not the service user, I feel I have cause to consider a court actionagainst the bank for damages. How do I quantify and start such a process?
