Barclays want business loan repaid

[kanana]

Sorry, but I am finding difficult to start a new thread. My query goes like this: My husband runs a company and it has an overdraft which was turned into a loan. This was not secured and Barclays bank sent letters for us to agree to have the debt secured on the house. I refused to sign mine as this was not the original agreement. My husband agreed to pay a certain amount towards the debt.

Now the Bank has sent my husband a claim under a guarantee claiming that the whole amount should be paid plus court fees and solicitors costs. They have also written to him advising that they are closing all his accounts with them.

 

My question is would the bank seek a charge on the property for a business debt of a limited company which was not secured at the beginning the loan was agreed?

 

Your help and advice will be appreciated

 

Thanks.

[slick132]

Hi Kanana,

 

New thread started for you.

 

Was the loan made to a Ltd Co.

 

Did YH sign some sort of Guarantee.

 

Has YH set up alternative banking arrangements so trading and personal banking can continue when Barclays close his a/c's.

 

[kanana]

Yes loan was made to a limited company.

Yes he signed some sort of a guarantee

He is trying to sort out an account

[slick132]

Hi Kanana,

 

You said in post #1, that you refused to sign papers agreeing to the debt being secured on your property. I assume YH subsequently signed different papers which set up the guarantee.

 

Even though the loan was made to the Ltd Co, YH agreed to the guarantee and this is what the bank will rely on in seeking a CCJ. They may also seek a Charging Order against YH's share of a jointly-owned house.

 

Have the bank threatened court action at this stage, or has YH received a court claim.

 

See this thread about complying with the strict deadlines that apply to court claims - http://www.consumeractiongroup.co.uk/forum/showthread.php?419198-You-have-received-a-Claim-What-you-need-to-do.-**UPDATED-April-2014**