Irresponsible Lending Or my Fault?

[Brit2011]

Ok here goes I was a retail manager in a comfy 20k a year job in 2005 a local business in my field came on the market I had no saving so I approached my bank with a business plan and came away with a 100% 100k mortgage a 50k business loan with a 10k overdraft attached fantastic so after waving up the pro and cons I went ahead and purchased my very own business.I ran the business on a shoe string for four years in September 2009 I realised I would not get through the winter without help I contacted my business manager to get extra funding and was told sorry there is no funding available for small businesses and by the way we want the overdraft paying back real bummer, we decided the way forward was to pay back the the mortgage by means of a further loan which I thought was a bad idea but was not given any other option and to remortgage the business property to release further cash this I agreed to and within a week the business manager came along to my shop I was on the phone so he stuck the papers under my nose I signed them, off he shot the loan was set up overdraft payed off and I was left with another loan I could not afford to pay brilliant thinking not but I was desperate.I was soon told I would not be allowed to remortgage though my bank but they suggested I remortgaged my house or arranged a loan with a different lender this was not an option because I could not afford to pay myself and my credit rating was severely affected.Unfortunately I ran out of money and ceased trading in January 2010 the staff lost there jobs and I lost everything I was then reminded that I had signed personal guarantees for the loans(this was news to me and I was unaware until this point) and they would take my house if the loans where not payed back in full.I had no income became very ill and could not cope with the situation every week on Friday at 4.30pm the bank would call and remind me they could and would take my house the loans escalated I owed 65k on the mortgage this went up to 105k the loans went from 30k to 70k with the fines applied I am now looking at bankruptcy and preparing to become homeless.My argument is I could not walk into a bank and walk out with a 100% mortgage 50k business loan and an overdraft of 10k today and they never made it clear there was personal guarantees involved.I now realise I was destined to fail from the start it was just a matter of time and there is nothing I can do about it.

Regards Brit

[teaboy2]

Re: Irresponsible Lending Or my Fault?

You may have a case for misrepresentation of contract on the loans and irresponsible lending and behavouir from your business advisor. He/she should have never got you to sign those loan agreements at your work whilst you were busy working, he/she should have arranged an appointment with you at the bank for you to go over them and discuss them prior to signing.

The problem is proving it, though i would write to the bank informing them that the business advisor misrepresented the loan agreements and acted irresponsibly in breach of the banks policys no doubt too, and detail everything the advisor told you, suggested you did and how and when you signed etc making note of how he/she came to your business premises whilst you were busy working without making a private appointment to discuss the loan agreements. Remind them of their duties under irresponsible lending practices. Also ask for a copy of their complaints procedure.

It is a long shot am afraid, but its worth a shot. I would also suggest you go and speak to a solicitor that gives free first consultations. Though if the bank fail to uphold your complaint you may take it to the finanical ombudsman service but only after you have given the bank the chance to investigate and respond to your complaint.