NatWest Business account & Loan problems

[Steve2012]

Hi,

I’ve been reading forum threads for a few days and would like to congratulate you all on amassing such a mine of information! I hope I am posting this in the right place.

 

I have a problem that I would like to ask for help with. To cut a long story short, I’ve run a business for over 20 years, initially in partnership with my wife until her death and then as a sole trader. I bank with Natwest and until a few years ago my relationship manager brought bottles of wine at Christmas and congratulated us!

 

The recession and losing our biggest customers hit hard and I reduced staff from six fulltime to one part time, closed a branch office, returned my contract hire car, re-mortgaged my home etc etc. There was a shortfall in funds so I used personal credit cards to fill the gap and got to the point just over a year ago when I thought bankruptcy was the only way out.

 

I contacted PayPlan who were very helpful and arranged a monthly payment plan for the £68k on my credit cards. I could breathe again and very slowly the business improved. The banks were still adding interest to the amounts and at the rate I was paying of £350 month it would never end! PayPlan suggested an IVA which was arranged and began in February this year.

 

With the IVA I could see a light at the end of the tunnel – 5-6 years. I can now pay all bills on time, business and personal, keep the business going and maybe even employ another staff member later this year.

 

Then it all changed! Last week Natwest stopped a charge card we use for buying stock even though it was always paid on time at the end of the month. I rang to ask why and was told there was not enough money in the account talk to my relationship manager. (who has never introduced himself or ever contacted me in the last two years). The mobile number they gave me was unobtainable. Then all cheque payments and direct debits on the account were returned even a loan payment to Natwest themselves. Then the outstanding charge card balance was taken from the account with no warning – even though it wasn’t due for another three weeks.

 

All of these things are not big problems – I have a ‘parachute’ business account and am now changing to this.

 

I suspect Natwest have discovered the IVA on my credit file and are taking action.

 

The major problem is that I have two business loans one from 2009 which was to pay down an overdraft and from 2010 for a smaller overdraft together amounting to about £75k. These are secured with a first charge on my business premises and a second charge of £10.5K on my home.

 

I have just read the loan agreements again and find that having an IVA puts me in default.

 

I am now in fear of what will happen next. I got my relationship managers proper number but he doesn’t return calls. I’ve asked in the branch what is happening and nobody knows. There is enough money in the account to have paid all direct debits and cheques but as I mentioned all have been returned except for one which is for insurance on the business premises! (how did they know?)

 

My questions are what is likely to happen next and what can I do about it? Under BCOB regulations surely Natwest is not acting correctly, but what can I do.

 

There is probably some equity in the premises but not in my home. But commercial property is just not selling with lots empty here in the north east. If they re-possess the premises I will have no income from the business and have no money to relocate anyway. I had planned to retire in four years – but not any more! I think it’s unlikely I could get a loan from another source with my IVA on file. If I default on the IVA, I will be made bankrupt. I don't know what to do for the best.

 

Sorry the short version turned out so long and now it’s Easter. Can anyone help after Easter?

 

Happy Easter everyone

[MARTIN3030]

Welcome to the site.

I will move your thread to the business bank account forums

[Steve2012]

Thank you for moving my thread to the right section!

[andy262000]

Good luck steve2012, I'm having a nightmare with natwest, no explanation from them just hit a bad patch things starting to improve then they don't want my business and want there money back, there trying a possession order this week in court I think I have a good case to put forward we'll see. I have a business premises under commercial loan and they stitched me up with overdrafts and charge on my house also revoked all my facilities apart from paying in.

[MARTIN3030]

Steve,were any of these regulated under the CCA ?

[Steve2012]

Hi Martin,

 

I had to sign a declaration for exemption (sections 16B and 189 (1) & (2) CCA 1974) for the larger loan in 2009. The 2010 loan for the lower amount actually spells out certain rights the bank have under the CCA - like not needing a court order to enforce the agreement!

 

On turning the overdraft into a loan in 2009 I don't remember actually meeting anyone and on the 2010 loan I definitely never met anyone! Everything was done by post. I've now received a letter from Natwest collections department telling me I'm in default (seeming to indicate missed payments - which is not true) and how do I propose to repay the 2009 loan (no mention of the other yet). I sent a reply proposing I continue to pay the agreed monthly amount and that there are funds in the business account for the payment they didn't take and also the next payment due at the end of this month. I will await their reply.

[andy262000]

How are you getting on with Natwest? very interested to compare how they are treating you as it seems similar to myself. All the best

[stalagtite]

About 3 years ago I had a business which was a Ltd Company I obtained a £5000 overdraft and had to sign a Personal Guarantee Form shortly after I obtained a £15000 secured loan, but I subsequently suffered a nervous breakdown and the business folded.

 

I managed to repay the secured loan which at the time was £17500 (despite also making some payments, natwest was unable to supply any details of fees or charges as they have combined accounts)

 

Natwest are saying that when I applied for secured loan one of the clauses stated that all debts will be secured on property, and they are now demanding the settlement of the overdraft in Jan (currently paying £50 per month), failing to do this will see my home repossed.

 

Any advice please

[MARTIN3030]

Having to sign an exemption from CCA seems to be an unfair business practice,as they are creating an imbalance.

What have you got in the way of a papertrail ?

If you have not done a full SAR I think would be a tenner well spent,but needs to be exhaustive.

[stalagtite]

Thanks for that[ATTACH=CONFIG]37579[/ATTACH] will request SAR Today in the meanwhile I have attached the docs I had to sign, as you will see only the waiver of legal advice was witnessed by the bank rep[ATTACH=CONFIG]37578[/ATTACH]

[MARTIN3030]

images are too small to read.

Site team are discussing potential recourse for this.

[stalagtite]

I did not sign a loan agreement as such the only thing I signed did not show amount of loan,term of loan, interest etc,

it simply stated that an amount of £15000 was secured on my home, does this sound right?

[stalagtite]

Can anyone advise how to attach images of paperwork to site?

[MARTIN3030]

Yes will get someone to tell you.

[MARTIN3030]

I did not sign a loan agreement as such the only thing I signed did not show amount of loan,term of loan, interest etc,

it simply stated that an amount of £15000 was secured on my home, does this sound right?

 

Not really,

[havinastella]

Dx100 – Instructions on uploading pdfs

 

scan the required letters/agreements/sheets

as a picture file

remove all pers info inc barcodes etc using paint

but leave all figures and dates.

go to one of the many free online pdf converter websites

convert the image to pdf format.

or ir you have PDF as an installed printer drive use that

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

hit the add files button on the top right

hit select files, navigate to your file on your pc

hit upload files

NB:you can set where it goes in the post by hitting insert inline.

the hit reply button

 

 

x x

[stalagtite]

[ATTACH=CONFIG]37914[/ATTACH][ATTACH=CONFIG]37913[/ATTACH]

[stalagtite]

here are the docs signed for my secured loan,,,not really a loan agreement!

[stalagtite]

Paperwork for NATWEST Secured loan,,,,sames somewhat vague comments please [ATTACH=CONFIG]37923[/ATTACH]

[havinastella]

These images are still unreadable.

 

Follow the advise in post 16.

 

Jogs

[MARTIN3030]

What does the heading say on the NW doc ?

[stalagtite]

nat1 001.pdf

[stalagtite]

docs from natwest opinion please!nat2 001.pdf

 

This is my so called loan agreement, it is also unsigned is it legal?

 

Document was not signed in the presence of my solicitor, just the bank rep, and I have never seen Legal Charge Doc, SAR POSTED TO THEM

Edited August 30, 2012 by stalagtite
additional information

[stalagtite]

Waiver

[MARTIN3030]

Waiver of Legal advice !!

 

Wow