Previous Business Nat West claiming overdraft

[Si mon]

Please can anyone help with some advise or info. I left a company as a director inFeb 11. I and a previous business partner were guarantors on the overdraft when we set up 5 years prior. He left over three years ago the new partner who aquired his holding then took mine. Had meeting with bank, told I was leaving signed required docs to take me off account, handed over all cards etc. Out of the blue letter end of July saying company had been put into liquidation by new sole owner and bank had not transfered the od to new owner. Bank complaints have reviewed and whilst sympathetic and admitted negligence. Now saying that 28 days would have been a reasonable time in order to change signatorys etc and they want me to pay the balance on the account 28 days after my meeting with the business manager. Not persuing new owner even though let her go over od limit of 45k to 60k as they didnt persue her paperwork thouroghly enough (obviously shes got into trouble realised this and then folded the company!) On the day I got the letter asking for 60k spoke to the business manager asked why I was not informed and eventually he said "I couldnt say anything to you because it had nothing to do with you" - At the meeting with bank had present partner who took company over and accountant - they had been speaking prior to this so fully aware, I was informed that bank needed one more document in order to transfer account, I insisted it was sent and signed there and then. He did not advise me on proceedure or timescales and I would only be released in writing just said he would have it sorted. Now obviously changing story to the company line. Bank also never signed off previous founder of the company. I had left the firm, I had it all agreed that new sole owner would take the od and business on, I am now left wondering how to fight this? Any help most appreciated.

[alsagerman]

Re: Previous Business Nat West claiming overdraft

What??? A Bank playing games??? Surely not.

As a Director of a company myself this is a little alarming. Not at all sure on how you stand with this tbh but looks like a very good case for a negligence claim against the bank.

As you will be aware business debts are a different ball game to private debt and I would advise seeking professional help in the first instance. No harm either in making the bank aware you are minded to pursue a claim against them and their advisers (Its the advisers job to provide truthful advise). It seems to me the bank know it can't recover its money from the new owner and are simply trying their luck with you. Good luck and keep us informed.

[leclerc]

Re: Previous Business Nat West claiming overdraft

Please can anyone help with some advise or info. I left a company as a director inFeb 11. I and a previous business partner were guarantors on the overdraft when we set up 5 years prior. He left over three years ago the new partner who aquired his holding then took mine. Had meeting with bank, told I was leaving signed required docs to take me off account, handed over all cards etc. Out of the blue letter end of July saying company had been put into liquidation by new sole owner and bank had not transfered the od to new owner. Bank complaints have reviewed and whilst sympathetic and admitted negligence. Now saying that 28 days would have been a reasonable time in order to change signatorys etc and they want me to pay the balance on the account 28 days after my meeting with the business manager. Not persuing new owner even though let her go over od limit of 45k to 60k as they didnt persue her paperwork thouroghly enough (obviously shes got into trouble realised this and then folded the company!) On the day I got the letter asking for 60k spoke to the business manager asked why I was not informed and eventually he said "I couldnt say anything to you because it had nothing to do with you" - At the meeting with bank had present partner who took company over and accountant - they had been speaking prior to this so fully aware, I was informed that bank needed one more document in order to transfer account, I insisted it was sent and signed there and then. He did not advise me on proceedure or timescales and I would only be released in writing just said he would have it sorted. Now obviously changing story to the company line. Bank also never signed off previous founder of the company. I had left the firm, I had it all agreed that new sole owner would take the od and business on, I am now left wondering how to fight this? Any help most appreciated.

Did he at any point state you were liable for the overdraft?
Did he at any point or the bank write out to you to state that there was still one document missing?
What was the balance of the account at the time that you relinquished control of the company? Is that the balance that they are asking for?

[Si mon]

Re: Previous Business Nat West claiming overdraft

Thank you. I really appreciate the response. I am actually writing to them now. They did actually say initially that as I was no longer regisitered at companies house as a director they may not be able to claim it. They now say that what is key is that I was never formally advised of my release from the guarantee. They have written to say that there have been failures in service and a lax attitude by the bank in order to arrange a new sole guarantor. Again Many thanks !

[Si mon]

Re: Previous Business Nat West claiming overdraft

No - he is obviously no saying he fully explained it to me!I had a meeting at my accountants. The business manager, my partner who was to take full control and a senior partner of the accounts firm. At the time I asked what was outstanding and we had the bank email the docs so they could be signed. Once they were sent I asked if I was needed for anything else and told by business manager no. I had no correspondance what so ever issuing the proceedings he simply said it would be sorted now they had the documents and the other party was in full agreement to take things on. I even sent a couple of text messages a few weeks after to see if all finalised but did not hear back. At the time the account was roughly 35k od. As mentioned they had traded it to nearly 60k and let her use the cards that were in my name and the internet account. I was told to pass cards etc and cheque books in but they have written to say by doing so I was fully aware that she was running the account. Spoken to a firm of solicitors who have said they would request an estopple? (forgive me if this is wrong) however want up front fees and then said if it went to court and I lost I could be liable for the costs etc and the debt which I cannot at present face losing. Thank you