Money Claim - Solaris (Commercial) Ltd.

[adi92]

Hello, hoping if someone can help. I have received a Claim Form from Solaris (Commercial) Ltd. saying that I owe £9934.50 to the claimant under a Personal Guarantee in relation to a Unregulated Agreement owed to Youlend Ltd. and assigned to the Claimant. Notice of the assignment has been provided to the Defendant. And the claimant claims the sum of £9934.50 together with interest accruing from the date of this application (21/01/26) at the Statutory rate of 8% which is a daily interest rate of £2.17. Together with the cost of the claim.

Just to start with I have completed Acknowledgement service buying me sometime if I were to file a defence.

However coming to original claim, I am not aware of the Personal Guarantee as it was only one agreement signed and I was not made aware of any complexity regarding the personal guarantee. Also in the claim they have mentioned "Unregulated Agreement" not sure what this means? To be honest I feel I signed something without any proper explanation or advise from the Creditor.

I do recall I paid off a total around £5k when I took out the loan but the things got really worse and business just started loosing money and I had no choice but to close it down.

Since Jan-25 I had been in employment and already struggling to cover up the loss that I have suffered financially due to the business. I am on payment plan with my energy suppliers and credit cards. So this will be the last thing that I want to impact my life as I work in Finance. I am a father to two children aged 5 and 3. Also we are expecting another baby in the first week of April and this whole situation makes me so vulnerable.

Any support and help would be greatly appreciated.

Thank you

[Frank1]

An unregulated agreement means that your personal guarantee and company loan is not regulated by the Financial Conduct Authority. This unregulated agreement does not have the same protection that a consumer would have under a regulated loan.
A personal guarantee signed by a director or directors for a company loan acts as a legal bridge that bypasses the limited liability of a company.
Reviews for Solaris are not good. Many say the company is difficult to deal with.
Before drafting your defence you could read the article
"What is an unenforceable personal guarantee?" at
www.begbies-traynorgroup.com
You may have a good argument that you did not understand and were not told by the lender about the financial implications to yourself if the company failed to make repayments in accordance with the loan agreement.

[Frank1]

You should also read "Replying to a County Court claim: how to respond correctly" at the National Debtline.
If after reading the article in post 2 you consider your defence is weak, you could use admission form n9a to work out how much you could afford to pay.
As you now work.in finance you should do your upmost to avoid a CCJ.

[adi92]

An unregulated agreement means that your personal guarantee and company loan is not regulated by the Financial Conduct Authority. This unregulated agreement does not have the same protection that a consumer would have under a regulated loan.
A personal guarantee signed by a director or directors for a company loan acts as a legal bridge that bypasses the limited liability of a company.
Reviews for Solaris are not good. Many say the company is difficult to deal with.
Before drafting your defence you could read the article
"What is an unenforceable personal guarantee?" at
www.begbies-traynorgroup.com
You may have a good argument that you did not understand and were not told by the lender about the financial implications to yourself if the company failed to make repayments in accordance with the loan agreement.

Hi Frank, firstly thank you for taking the time to respond to my thread. So I did some digging and apparently there was a Junior Account Manager who basically got me this loan. I reviewed all the emails with the loan offers that and none of them ever mentioned that the loan is subject to a "Personal Guarantee" or was asked to seek any legal advise for this matter before signing. The whole process was so fast that I was made to sign the contract the same day. Neither was I informed of the agreement being "Unregulated" or "Regulated" which I only got to know after you have explained. I was not advised of any implications how this would affect me personally. I feel like my rights have been exploited after understanding these terms.

Even after the loan I was never able to access my dashboard/ portal to see my statements. Neither was I provided any hard copy of the statement. Despite my multiple request nobody from their customer service got in touch with me regarding this. The issue only became serious when I was told that the payments have stopped coming out of the bank despite there was a DD in place for every week. I informed them that I was not sure what happened as the payments were going through fine previously. I had a very weird response saying that it is my responsibility that payments are made or otherwise you are liable for payments... I explained that this was not something I was aware of and I have made regular payments and I have positive intentions to make payments so if you could please set up the DD again.

Since then there were various amounts were being taken out of the bank and I requested access to my statement/ dashboard once again which was never entertained - simply being told that the customer service will be in touch with you.

Further down the line I received an email saying that the I am getting in touch to you as a Personal Guarantor of a completely different business which I had a no clue of. Upon this I emailed my account manager cc'd customer support to get in touch with me urgently and I never had a response. During all this my missus had a miscarriage, despite myself who earlier faced a redundancy.

Things didn't go as planned with the business and in March-25 I closed down the business.

[adi92]

An unregulated agreement means that your personal guarantee and company loan is not regulated by the Financial Conduct Authority. This unregulated agreement does not have the same protection that a consumer would have under a regulated loan.
A personal guarantee signed by a director or directors for a company loan acts as a legal bridge that bypasses the limited liability of a company.
Reviews for Solaris are not good. Many say the company is difficult to deal with.
Before drafting your defence you could read the article
"What is an unenforceable personal guarantee?" at
www.begbies-traynorgroup.com
You may have a good argument that you did not understand and were not told by the lender about the financial implications to yourself if the company failed to make repayments in accordance with the loan agreement.

I definitely want to defend the claim and worst case scenario even if I am obligated despite being misled through out the process then I would least want this to be settled out of the court without a CCJ.

Are you able to help how the defence should be structured based on the information above?

[Frank1]

Have a read "How to File a Defence in UK Court: Step-by-Step Guide" at www.contendlegal com
There is useful advice under the heading "What to Include in Your Defence" You paragraphs should be short and numbered. State why you disagree with points in the claim and provide reasons why..
The article also states how a Defence document should be formatted.