personal gauarantee on a failed business overdraft?

[dontletthem]

Hi there, I gave a personal guarantee on my business overdraft which has since ceased trading. I realise that a business overdraft is not covered by the CCA but when the business fails and the banks go after the guarantor does it not become a loan that is covered by the CCA?

Any advice appreciated as, according to the bank, if it goes to court, they will set interest at 8% rather than 0%? They are using this threat to make me agree to a 3% rate of interest and a voluntary charge on a property I own (not the one I live in) - although they have agreed to the monthly payment I offered them.

Thanks.

[labman]

Re: personal gauarantee on a failed business overdraft?

I fear the bank may be correct, but please wait for someone more knowledgeable in this area. The site is always quiet at the weekend. Meanwhile, this may help:

http://www.bankinginfo.com.my/_syste...guarantors.pdf