Sole Trader Overdraft - RBS - Moorcroft now AIC

[ZAZAZA]

Hi All,
The wonders of the internet have brought me here :whoo:

My husband (OH) started a sole trader business importing goods from the states about 4 years ago.

The deal was that someone that had been doing this job for several years had sold their business up & relocated, my OH then got in toll with this chap & his promises. My OH then set up a sole trader account & said person would manage it & they would split profit down the middle. The said person was not a partner, as he had an anti competition clause in place for the sale of his business, so my OH was fronting this (and all the money) with the other guy doing the day to day running of the business on the hush hush

After about six months, things looked like they were going well, but in order to get better pricing & hold more stock, the other person arranged on my OH behalf, an overdraftof £10k with his old bank manager (some 150miles away who my OH never met personally) that required the minimum of paperwork or checks.

It would appear my OH duly signed the £10K overdraft papers & they utilised the account in the overdraft state most of the time.

Not long after it all went pear shaped when the other person decided to go abroad to work , only then when my OH took over the day to day running did he find all the mistakes, lies, missing money & stock.

Shortly after my OH sold what was left in a lump sum to another supplier, just to bring it to an end.

However he left the account sitting at around £8500 overdrawn, and buried his head in the sand

He has had several letters from RBS asking to have the overdraft cleared, this was then handed over to Moorcroft, who wrote lots of threating letters, when all of these went unanswered, it would appear that it has been handed over to AIC in Glasgow, who have written several letters and now have taken to calling our home telephone (which is when this all came out )

However I am trying to help as my OH doesn't know where to start & neither do I really, as we dont have the money to pay the debt, but to date no correspondance by my OH has been sent to any of the above mentioned companies. However having checked today, it would appear that moorcroft have done a search on my OH credit report (at our address)

Can anyone provide us with our best plan of attack?

Thanks

ZaZa

[SpringerSpaniel]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

AIC are a particularly nasty DCA who specialise in business debt. Nat West - who are linked to RBS - tend to sell debt to them.

One of their specialities is to threaten to sue you in Scotland if you live in England and vice versa. this is specifically against the OFT Code of Conduct and is considered automatically to constitute harrassment.

[labman]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

I guess the obvious initial question then is to you fit into the category above of them pursuing you from a different country?

[SpringerSpaniel]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

They pursued me re a NatWest Loan, they contacted several third parties including work colleagues and were quite threatening, but bizarrely never actually contacted me !

[ZAZAZA]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

The overdraft was arranged in Scotland (where we reside) with a Scottish branch of RBS (albeit not our local branch, but one approx 150miles away that we have never set foot in, let alone met anyone from the branch) & although moorcroft I think are Manchester based AIC seem to be based in Glasgow.

To date it has been the usual 'We may recommend that our client takes legal action' type thing, but now the automated calls & human operative phonecalls are happening several times per week.

[ZAZAZA]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

Hi Folks,


Would I be better posting this in another forum?


Had another barrage of calls yesterday, some automated, some human, have told them do not phone, but doesn't seem to stop them.


Getting concerned by the increasing number of these calls.


Thanks


ZaZa

[Lord_Alcohol]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

Can anyone provide us with our best plan of attack?

Have you written to RBS to clearly explain the situation and to ask for an arrangement to pay? It seems that this could be converted to a fixed sum loan and repaid over, say, 36 months.

Once that is done then could your OH think about suing his former business partner?

As for the telephone calls, I personally would just change my number. BT will do it for nothing if you say you are being harrassed.

LA

[ZAZAZA]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

Hi LA,

Thanks for the info.

The problem just now is our income V expenditure.

We have cut out all luxuries & meerly keep our heads above water, now having 2 kids, but I guess it's worth the call.

One thing I have noticed however is that the £10K or remaining £8.5K does not show anywhere on my OH credit rating account, there is not even a mention of RBS (other than a mint card from years ago that was closed) All other debts to all other organisations are present & correct, the only thing that is there ref this, is a search by moorcroft in June last year?? Does that mean anything?

Suing the other person will never happen, as he's now abroad, plus as we learn more about this guy, it seems its his modus operandi (spelling?)

I read something about a device you can use to stop unwanted calls, as we've had this number for 20 years, so would rather keep hold of it.

Thanks

ZaZa

[strangewayofsavin]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

Hi All,
The wonders of the internet have brought me here :whoo:

My husband (OH) started a sole trader business importing goods from the states about 4 years ago.
ZaZa

Does your other half have an import liscence, or was the goods exported under the U.S citizens export liscence?

The reason I ask is because there is a good chance that your O/H could claim he was an agent for the foreign company. The main problem is the over draft account, but there may be other options to get the amount reduced as an agent of a foreign based business. The key being the overdraft being arranged from overseas, and your O/H being their agent had to sign for it, which could leave a partial responisbility.

[CleverClogs]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

The problem just now is our income V expenditure.

We have cut out all luxuries & merely keep our heads above water, now having 2 kids

So you've reduced your number of children to the minimum?

Did you put the others up for adoption or sell them to the local glue works?

One thing I have noticed however is that the £10K or remaining £8.5K does not show anywhere on my OH credit rating account, there is not even a mention of RBS (other than a mint card from years ago that was closed) All other debts to all other organisations are present & correct, the only thing that is there ref this, is a search by moorcroft in June last year?? Does that mean anything?

It makes me wonder if your husband had operated the business via a limited company.

Suing the other person will never happen, as he's now abroad, plus as we learn more about this guy, it seems its his modus operandi (spelling?)

What has the bugger's current domicile to do with it? It is quite possible to sue someone in the UK - yes, even in Scotland - even if the defendant resides overseas. If they have any assets in one's own country, a favourable judgement may even be enforced; if they don't have assets within the jurisdiction of the court, enforcement may be more difficult but it might not be impossible.

If the operator of the scam who took in your husband were officially suspected of fraud (or, at least, false accounting) then he could be extradited back to the UK.

=ZAZAZAI read something about a device you can use to stop unwanted calls, as we've had this number for 20 years, so would rather keep hold of it.

Yes - a call blocker ---> link

Of those, the Truecall with recorder is certainly the best, as it would allow you to record the lies told by the DCA telephone monkeys should you accept any of their calls or should you ever call them.

[Top Not]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

Hi,

First of all debt collection agencies have no power whatsoever and are not court bailiffs.

They can send letters, ignore them you only deal with the bank.
They can phone but if the phone calls are constant that is intimidation and harassment. Contact your phone company and request monitoring of all incoming calls and contact the police and the financial ombudsman.

Do not talk to these people.

Go to citizens advice to explain what has happened and request all data/ documentation concerning this account from the bank.

All letters keep copies, and send recorded delivery and keep proof of postage.

Start a diary of all phone calls and letters to prove intimidation.

They have breached your human rights to privacy.

Good luck.

[ZAZAZA]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

Hi Folks,

Sorry this has taking time to update, I'll answer the questions first then update after.

SWOS - No OH didn't have import licence or sole distribution rights, just purchased from several different wholesalers.

CC - I wish I could sell the kids to the glue works - what's the going rate

The business was definately a sole trader.

I think given this guys previous & the way my OH structured everything, the only people to come out well from pursuing that angle will be the lawyers.

I had another call the day after my last post & having read around the forum, I informed them if they did not stop calling I would ask BT to register the calls & I would report them to the police & OFT for harassement The reply was that was the last call they would make & likely the next step would be court

TN - Thanks for the useful info, I'm learning more as I go along.

I did go to S.A. but found the info on this site more useful

UPDATE:

Received letter from AIC this morning saying 'As above account remains unpaid, AIC are reviewing file to consider if further action is warranted'

'At this point there is an early settlement offer ......' (basically 50% split over 4 months) & a 'Partially satisfied' on the credit file.

Given that a P.S on CF is as bad as a default (please feel free to correct me) should I continue to ignore, my concern is that we have joint finances & both of us at this moment would appear to have good credit ratings.

OR do I go down the prove it route? Is there a protocol the bank should have followed for setting the overdraft up (i.e. not post something 150miles with a sign here, unwitnessed by bank or bank rep) what statutes apply to overdrafts?

Thanks for reading & all the help so far

[Lord_Alcohol]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

Oh, so there is adverse data on your credit file as a result - that must mean that the S/T account is deemed a 'consumer' account and subject to the 1974 Consumer Credit Act. If that is the case then procedures have to be followed.

If the O/D had not reached its term, then the bank needs to send a termination notice under SS76 and 98 to end it.

There should also be an O/D agreement somewhere that sets out the financial information that must be shown.

If a default has been recorded the bank must first serve on you a notice of intent to file a default, which is required by the ICO before the default can be recorded and which gives 28 days notice of the bank's intent.

I think I would now SAR the bank, get all the documents together, see if the account and O/D come under the 1974 Act, and look for a technical defence.

If you find faults in the bank's procedures then it gives weight to any request to knock some of the debt off and/or convert it to a fixed-sum loan on a low rate.

Anyway, I would start by getting all the documentation together. It's only when you have that that you will be able to assess whether the bank has cocked up. A SAR will give you most of this so why not get that going asap?

HTH
LA

[ZAZAZA]

Re: Sole Trader Overdraft - RBS - Moorcroft now AIC

Hi LA,

At the moment there is no mention anywhere on my OH credit file of this debt to RBS or Moorcroft or AIC.

What has been mentioned is that if I accept AIC 50% discount for settlement, it will be the end of the matter but that it will show as 'partially satisfied' on his credit file, in which case is there any point in settling?

I will have a good read round the site & see if I can download some templates regarding the matter & starting sending some letters off.

Thanks again

ZaZa
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Oops forgot to ask, is it worth trying a Full & Final but asking for no record on credit file, does anyone have any positive experience of doing this?