Personal Guarantee for Business Overdraft unsecrued

[GillianP29]

Hi all, I have been going through all the problems with the Personal Guarantees and i have the same problem with Natwest bank. i had a personal guarantee with the bank which was set up in 2004 in the amount of GBP 30,000. We had this for sometime and it was automatically renewed every year without signing anything, don't know if that is possible, i just saw the renewal fee debited in the account, and never got a copy of the Guarantee.

Business wasn't going very well for us and we needed a further overdraft to be able to pay our suppliers so we asked the bank for a further 30k for a period of 3 months. This would be repaid from the sale of some property we had already sold, but was not yet completed. The bank asked us for a letter from the lawyer organising the completion which should mention that he as a lawyer was responsible for the payment of the full 60k on completion, we were never asked for another guarantee letter for the new amount of 60K, nevertheless, completion date was adhered to and we paid the 60k. And my account was again charged with renewal fee for the 30k. My company is now closed, and an amount of GBP -35000 dr left in the account. The bank now says that the 60k guarantee is still in place, but we never signed a guarantee for that amount and have asked the bank for a copy of this and find that it is signed on the last page, surely the bank would require a document such as this to be initialled on every page? Surely when the 60k was paid the guarantee was no longer in force as according to the bank it was specifically for a 3 month period.

 

I hope someone can help me or guide me with this.

 

Gillian

[Needabreak]

Situation Report...Please help if you can.

 

The Bank do have the signed guarantee and bank statements, but these were sent after the last date for the allocation questionnaire.

 

It is now clear that I am indeed doomed to fail defending this action.

 

How do I go about now admitting the claim and asking the court for an instalments order for what I can reasonably afford?

 

It's all about damage limitation now. What if the bank won't accept the instalments if given as they are too low? i.e £5 a week on a 40K+ debt!

 

Thanks.

[Rhia]

Needabreak...what happened with this? Any update?

[Bigdebtor]

Guys

 

I've got a similar situation - but it's my "trusted" CA who is now pursuing me for Company Debts.

 

Can any of you please help?

 

BD

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?329855-I-m-getting-pursued-personally-for-debts-incurred-by-my-failed-limited-company.&p=3642760&viewfull=1#post3642760

[HTA]

Hi Needabreak,

 

What has happened since you last updated this thread?

 

Any update?

 

All the best

 

HTA

[ukfinancials007]

I have a comparable difficulty with my Bank who claims the business debt was individually guaranteed by me and is secured on our house - but the standard safety says it only apply to joint debts - not my own human being debt. They can't find the unique business loan paperwork by the way.

[Bigdebtor]

UKF

 

It's amazing how often Banks lose such paperwork! I saved a few K with the opposite situation to you. I had signed a security securing ALL debts to the Banks including a Term Loan, Credit Card, Personal and Business Overdrafts. The Bank focused only on the Buisness Term loan (over £100k).

 

Becasue the Bank couldn't find its copy of the Term Loan agreement (and I wasn't about to lend them mine!) I managed to negotiate a confidential pretty low F&F which applied to all SECURED DEBTS. The Bank had forgotten about the fact ALL my debts with them were actually secured - base don paperwork THEY drew up - so as well as them agreeing to a hefty confidential discount on the Business Term loan, they unwittingly had to write off ALL the other debts - which they tried to say were unsecured "because they existed before the Term Loan was set up and the Security signed". I told them to sue me which they haven't done but they still haven't admitted the other debts must be written off - but have not ever chased me for them and I'm just waiting on SB coming in in due course.

 

Because of the confidentiality of the F&F this saving is not shown on my signature.

 

This is a long winded way of saying that if the Bank has lost its paperwork then YOU hold all the aces - and if the paperwork they do hold doesn't suit their urrent stance then that's just too bad.c

 

Stick to your guns.

 

Good luck!

 

BD

[Bigdebtor]

Just noticed my signature is not showing - not sure why?

 

BD

[MARTIN3030]

???????????

[MARTIN3030]

I have recently been asked by a friend to help him out with his stuff.

He had a PG which was then extended to a second loan.

He had a limited company,which was voulntary wound up.

He then opened up a new company doing the same business.

The bank are chasing the PGs on 2 loans and were chasing a third which he got under the government guarantee scheme for the former business.

The gov i think were guaranteeing 80% in default.

The bank added this loan onto the original PG.

Knowing RBS I was pretty certain that they would have got their 80% back-which they denied saying that they had a duty to exhaust all avenues.

When they realised we were asking a few questions,they then changed tac and said erm no...that loan was not included in the PG -yet we have it in writing that they said it was earlier.

I think that there is a need for the CAG to explore all this and share info.

I am proposing to make a sub forum in the business bank section where everyone can post their threads,and that we can get some help and support together and share it.

[littlenonni2012]

hi could i ask what the hefty sum was that the bank 'confidentially' asked you to sign, i owed 24k on a PG that was for my Ltd company and the bank have just approached my solicitor asking if we will negotiate! could you advise.

[MARTIN3030]

Hope you are resolved. I have a VERY similar problem - except my wasnt in the little chef, but leaning against the photocopier and probably took 15 minutes as we had a cup of tee.

 

 

Can you please explain exactly what you mean here ?