Personal Guarantee called in. Will it appear on credit file??

[moatmeister]

Cant get a straight answer either from my Bank creditor or their solicitor as to whether or not this will appear on my credit file.

Had an overdraft with Nat West for a limited company of which I was Director. That is fine.
Bank has called in personal guarantee which I signed .

That is also unfortunately fine,

They have set up a loan account in my name to receive the money. I have not signd or seen any paperwork for this.

They want to issue a Tomlin order for all this because the whole thing ended in court with a CCj due to an error. I have had the judgement set aside.

Their solicitor has intimated that the tomlin Order will not appear on my credit file but will the actual debt eto the bank?

Happy to resolve the debt issue with them but I dont want it on my credit file due to an impending mortgage application

They are pressurising me to sign by threatening to ask for "summary Judgement" . What is this and can they do it whilst we are negotiating?

[Amy]

Re: Personal Guarantee called in. Will it appear on credit file??

A Tomlin order will not appear on your credit file, but a debt will.

What was the original problem that resulted in a CCJ?

[moatmeister]

Re: Personal Guarantee called in. Will it appear on credit file??

Amy
Thanks for your reply.
Limited company with me as directpr,
signed PG for overdraft
Company ceased trading, bank calls in PG
Eventually get court summons etc nbut no prior communication except 1 vague unsigned letter
Game plan was to negotiate settlement and get time to pay
Give the whole thing to my solicitor to deal with, based on summons incorrectly issued but she cocked it up and didnt file defence properly
Ended up with judgement against me in default
Managed to get judgement set aside due to court error
Entered negotiations with bank, going ok
Need answer about debt/tomlin order appearing on credit file because of on going mortgage application
Asked question of bank, and bank's solicitor - neither seems to know or has returned my calls last week
They want to reinstate judgement if tomlin order not recieved monday (tomorrow)

Debt so far has not appeared on my personal credit file because presumably was originally registered to limited company.

Happy to pay but cant have it on my credit file, what should I do?

[Sapphire]

Re: Personal Guarantee called in. Will it appear on credit file??

Who are the banks solicitors ? If its Cobbets they are ok to deal with but very slow to reply to your letters.

[moatmeister]

Re: Personal Guarantee called in. Will it appear on credit file??

Yes is cobbetts.

They have replied to my original question but in a way that has confused me more.

I will PM you

[moatmeister]

Re: Personal Guarantee called in. Will it appear on credit file??

Thaanks for your message I can see ive got it but cant get into the system to view it. Says I am not logged in or dont have permission to access. obviously am logged in else i wouldnt be able to do this!!

[moatmeister]

Re: Personal Guarantee called in. Will it appear on credit file??

here is my question and the reply receioved from banks solicitors Cobbetts as requested.

Bank has no idea whether it will appear or not and has not yet provided a reply to the question.

Bank has opened a loan account inmy name to pay all this into, but I havnt seen or signed anything about this. Nothing currently shows on my credit file. Original debt was not in my name, i just guaranteed it.

I am confused by para 2 onwards. If I agree a full and final settlement with the bank why should the debt be marked as partially stisfied on the credit file.
and should it actually be there at all??

In the middle of a complicated mortgage application that will fall to bits if this gets anywhere near my credit file in any form at all.

any ideas please??

Without Prejudice

Dear Moatmeister,

Many thanks for your email.

Please be advised that the Tomlin Order will not be sent to any Credit Reference Agency nor will any Credit Reference Agency be advised of the terms of the Tomlin Order.

In terms of the reference of your debt to NatWest appearing on your credit file, I am advised that our client cannot remove or mark the entry as fully satisfied. This is due to the fact that our client is accepting less than the sum outstanding to them.

What will happen is that the sum owed and the arrears on the account will reduce over the term of agreed payment plan and at the end of this period the credit register will show that the debt is part satisfied with a nil balance.

The reason it is only marked as part satisfied is due to the fact that the total sum owed (i.e. the amount of the claim) has not been paid. Any settlement figure reached below the total owing is still only seen as part satisfied in terms of reporting to credit reference agencies. This is incidental to any terms agreed under a Tomlin Order.

The fact that, following payment of the agreed sum, the account will show as a nil balance reflects that the settlement sum has been paid but it will still remain as part satisfied as the full amount owing has not been paid.

As far as I am aware the register cannot be altered in the interim as to do so would give a inaccurate account of the present position. Our client is under a duty to record/report accurate information to credit reference agencies.

In the circumstances our client is unable to agree to your amendment to the Tomlin Order as requested.

I therefore look forward to receiving a copy of the signed Tomlin Order. If I do not receive this by Monday 26 April 2010 then as per our letter of 08 April 2010 my instructions are to proceed with the application for Strike Out and Summary Judgment.

Yours faithfully,

Cobbetts Solicitor

Paralegal
For and on behalf of Cobbetts LLP

From: Moatmeister
Sent: Wednesday, April 21, 2010 4:31 PM
To: cobbetts Solicitor
Subject: Nat West Tomlin order

21 April 10


Dear Solicitor

ref Nat West Tomlin Order

Thanks for your letter enclosing the tomlin orders.

I am happy to sign and comply with the one based on the £13k/£200/month arrangement subject to the addition of a line to paragraph 1 of the schedule to read as follows:

"No reference shall be made to this agreement or the outstanding amount owing which will appear on the defendant's credit file as held by Equifax, Experian or Call Credit"

Please can you reissue this accordingly either by post or email and I will sign it by return.

Regards

moatmeister