Arrow global chasing me for company debt as a director- saying I am personally liable

[MAhmed00]

Hi, I am hoping for some help please at 62 years old I cannot cope at this time.

I was a director of a company which went into liquidation in Nov 2019. The Ltd company borrowed from Newwave ltd (Capital on Tap) back in 2018, when Capital on Tap was informed that the comany was going into liquidation they passed the debt of £14,000 to capquest. I havent heard from a while as they used to email me on my personal email. Only recently I heard from Arrow Global who appointed Dryden Fair Fax solicitiors who have submitted a court case to recover this debt, which has been adressed to me personally at my residential. This is the first time anything like this arrived at my address.

I filed a defence and have been sent a directions questionire to fill out, which I need help with, if someone can guide me please, its been allocated to the fast track

I have requested New wave Ltd/ Capital on Tap and Dryden Fair Fax to provide evidence of the contract which they have failed to do.

Having done some research New wave and Capquest, Arrow Global seem like all one company with many subsidiries.

They cannot produce the contract even if the former company applied online via check box does this form a contract and am I personally liable as the former director? even if they were to provide the agreement

Does consumer credit act 1974 apply to me personally?

Arrow Global debt company -did not send a notice of assignment of any debt

I did not, nor did the liquidators receive any paper work for any pre-action protocol.


With my defence I submitted my income and expense showing a minus £1000 each month.

I also submited a mental health letter signed off by the doctor for my defence.


I feel like they are trying to push me into a corner as i dont know enough about the legal systen, in order to get a judgment and recover some funds, I am also afraid that they may put a charge on my house if they are successful. I feel helpless right now and belive Arrow Global are not following protocol, so how do I get any disclosure (contract) and ask the judge to throw this case out based on all the above points

Any help with be appeciated.

Deadline is 10 Decemeber 2021

[echat11]

Hi MAHMED00

Try not to stress over this, keep things in perspective.

des8 R0b Can you please take a look and advise, many thanks.

[des8]

AFAIK a director cannot be held liable for a limited companies debt except in certain circumstances which are:

• Overdrawn director’s loan accounts
• given a personal guarantee.
• Debts have accumulated due to fraudulent means (such as taking on credit you knew you wouldn’t be able to repay)
• Director misconduct
• Continuing to pay shareholders dividends whilst the company is insolvent
• Withdrawing and/or using company funds for non-business activity;
• Disposing of the company's assets at undervalue or no value

Could you please post up the particulars of claim and your defence as without those it will be impossible to assist you.

As this has been allocated to Fast Track you are at risk of adverse costs if you lose, so perhaps you should seek professional help.

[Ukmicky]

AFAIK a director cannot be held liable for a limited companies debt except in certain circumstances which are:

• Overdrawn director’s loan accounts
• given a personal guarantee.
• Debts have accumulated due to fraudulent means (such as taking on credit you knew you wouldn’t be able to repay)
• Director misconduct
• Continuing to pay shareholders dividends whilst the company is insolvent
• Withdrawing and/or using company funds for non-business activity;
• Disposing of the company's assets at undervalue or no value

Could you please post up the particulars of claim and your defence as without those it will be impossible to assist you.

As this has been allocated to Fast Track you are at risk of adverse costs if you lose, so perhaps you should seek professional help.

Ditto

[MAhmed00]

AFAIK a director cannot be held liable for a limited companies debt except in certain circumstances which are:

• Overdrawn director’s loan accounts
• given a personal guarantee.
• Debts have accumulated due to fraudulent means (such as taking on credit you knew you wouldn’t be able to repay)
• Director misconduct
• Continuing to pay shareholders dividends whilst the company is insolvent
• Withdrawing and/or using company funds for non-business activity;
• Disposing of the company's assets at undervalue or no value

Could you please post up the particulars of claim and your defence as without those it will be impossible to assist you.

As this has been allocated to Fast Track you are at risk of adverse costs if you lose, so perhaps you should seek professional help.

Hi echat11 des8 Thank you for your warm welcome and your response.


Arrow global are claiming I have provided a personal gurantee yet have not produced a document to prove this. I am aware that most finace companies these days do stipulate to be bound by personal gurantee but 'under eIDAS regualtion only qualified electronic signatures are legal I think having read this online, so I'm not sure box checking online qualifies.

My fear is that if I end up paying more than what they are claiming des8 ' adverse cost' I will lose my house which has built up equity over the lifetime. I am working part time to pay for rest of the mortgage and on disbility at the moment so cant afford legal help right now. I have looked at Joanna Conolly Solicitors and they are £500 plus VAT. If they are a good should I will have to borrow to defend this case.

Please see below :

Particulars of Claim

1. The claimant's claim is in the amount of £14,151.35 in respect of monies owing by the defendant under a personal guarantee provided in respect of the obligations of xxxx Ltd.
2. The balance owed was assigned from New Wave Capital Limited to the claimant, and the defendant has been notified of the assignment by letter.
3. The basis of the guarantee was that the defendant agreed to indemnify the claimant in respect of the liabilities of the company.
4. Under the agreement R87XXXX, the guarantor agreed to the payment of all monies due and owing to the original creditor or any subsequent assignees. The company has failed to repay the amount owing and a formal demand for payment was therefore sent to the
defendant.
5. The defendant has failed to repay the amount owing under the guarantee and remains properly indebted to the claimant in the amount claimed.

Legal representatives are dryden fair fax.

My defence is below, it maybe weak due to lack of knowledge because I had to file something before the deadline.

1. I do not believe that I personally owe in the amount of £14,151.35. I do not believe there was a legally signed contract between myself and New wave limited (Capital on Tap). The company that I was a director of went into voluntary liquidation in November 2019, all of the creditors were informed that xxxxx Ltd was winding up, the debt is with the company.
2. I have an email attached to indicate I was always in communication with New Wave Limited (Capital on Tap) and informed them on the situation when they called in Dec 2019 and early 2020. I also requested and asked for proof many times to provide me a signed copy of the personal guarantee contract when I spoke to New Waves Limited credit control department, which they have failed present to me.
3. It was suspect when New Wave limited appointed a debt collection agency immediately named CapQuest at the end of 2019, who I also spoke to and requested to see a contract for a personal guarantee.
4. I am surprised this now been transferred to another company 'Arrow Global Limited' who have send me court papers, this is the first time any type of correspondence was sent and in the form of a court letter to my residential address. I did not receive any other letters to my home address prior nor a letter before action.
5. The basis of the claim does not stand if there was no signed agreement, all the companies involved quoted an agreement number but not a singed copy of my personal guarantor agreement.
6. this would be the first time that I am seeing court papers. I have requested to see a signed agreement R873Q69 without success
7. The Business xxxxx ltd is the defendant who have now liquidated, I do not believe I am personally responsible for any of the Limited companies debt.

Further to my defence I would like to add the following in regards to my personal life and finances.
I am 62 years of age suffering from Health problems, I have to take in excess of 20 tablets a day and take insulin for my diabetes. I suffer from Anxiety, high blood pressure, cholesterol and I have also been signed off from the doctors as having mental health issues and depression (form attached).
I have suffered from two rounds of surgery for bowel cancer in 2020 and 2021. Currently I am on severe disability allowance.
My financial situation is poor as you can see from my income and expense. I am working a part time position in order to pay some of the bills as my disability benefits are not sufficient. I would be struggling to pay personally if the courts deemed that I was liable.

If you would like any information not mentioned, please let me know. My whole case rests on this agreement its all or nothing.

[DE DOGS]

I was a Director with an Ltd company that liquidated. I would have never signed as a guarantor but that will not assist in this instance. May I suggest that this all boils down to IF you signed as a GUARANTOR for this loan, they must produce that document to prove the loan, if not I think they are pressurising you to pay, but it's your call if you remember if you signed or not I'm afraid.

[echat11]

Have you sent them a SAR request?

They have 30 days to provide all the data on the account, so you will know exactly what they have. Make sure you get Proof of Postage.

https://legalbeagles.info/library/gu...ccess-request/

[MAhmed00]

I was a Director with an Ltd company that liquidated. I would have never signed as a guarantor but that will not assist in this instance. May I suggest that this all boils down to IF you signed as a GUARANTOR for this loan, they must produce that document to prove the loan, if not I think they are pressurising you to pay, but it's your call if you remember if you signed or not I'm afraid.

I have not, I will sent this SAR letter out today. What do I do about the directions questions, am I not going to also get disclosure from arrow global. I have the 10th Dec as the deadline which is in two weeks. The SAR request may take longer.

[echat11]

The SAR will hopefully provide more information, but isn't immediately relevant, especially to your 10th Dec deadline.
Do you mean Directions Questionnaire?
We don't know what arrow global will or won't send you.

[MAhmed00]

The SAR will hopefully provide more information, but isn't immediately relevant, especially to your 10th Dec deadline.
Do you mean Directions Questionnaire?
We don't know what arrow global will or won't send you.

echat11 yes thats correct, I have been sent Directions Questionnaire to fill out before the 10th of December. What shall I do it looks daunting and not sure what to write on this. Even the 1st question is confusing ' Given that the rules require you to try to settle the claim before the
hearing, do you want to attempt to settle at this stage?

I rather try and get it thrown out and not part with any money initially.

Please help

[echat11]

echat11 yes thats correct, I have been sent Directions Questionnaire to fill out before the 10th of December. What shall I do it looks daunting and not sure what to write on this. Even the 1st question is confusing ' Given that the rules require you to try to settle the claim before the
hearing, do you want to attempt to settle at this stage?

I rather try and get it thrown out and not part with any money initially.

Please help

You really need to calm down.

Take a couple of questions at a time, rest, make tea, then when you're ready, a couple more questions etc. The form looks 'daunting' but is straigtforward.

This is a 12 minute read, read it a couple of times, keep refering to it.

https://www.lawble.co.uk/directions-...naire/#header2

[MAhmed00]

You really need to calm down.

Take a couple of questions at a time, rest, make tea, then when you're ready, a couple more questions etc. The form looks 'daunting' but is straigtforward.

This is a 12 minute read, read it a couple of times, keep refering to it.

https://www.lawble.co.uk/directions-...naire/#header2

echat11 Thank you, I have completed the questionaire posted out the SARS and emailed a copy of the SAR. I shall email the questionaire N181 form twith the court tomorrow after looking at it with fresh eyes.

Ive complted the form and ticked YES to settling which allows me time to receive the SAR request i guess.

Not sure what happens next and what i'll be expecting?

[echat11]

Is 'Not sure what happens next' a question?

Your posts are 'confusing'.

If you've done this 'I have completed the questionaire and posted out', what do you hope to gain by 'looking at it with fresh eyes'?

Also if you post stuff, make sure you get Proof of Postage.

[MAhmed00]

Is 'Not sure what happens next' a question?

Your posts are 'confusing'.

If you've done this 'I have completed the questionaire and posted out', what do you hope to gain by 'looking at it with fresh eyes'?

Also if you post stuff, make sure you get Proof of Postage.

echat11 apologies, I have posted out the SARS and also emiled copy yesterday.

I will email the directions questionaires to the courts today, I wanted to check that I have written everything I need on section I. other information before I email it.

I will keep you posted when I hear back from Arrow Global or their solicitors (dryden fair fax)

[echat11]

Make sure you post the DQ to Arrow Global (Dryden Fairfax).