Hounded by bank

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Hi
I along with my colleague have been operating a small limited company and over the last couple of years we have got into some personal debt trying to keep up payments etc. We have consulted personal debt counsellors and have a debt management programme (mainly credit cards) One has insisted on us putting a voluntary charge on my home. This plan has been in place for approx. 18 months.

The personal account and limited company account were with Nat West and we were advised to close them and open new accounts which we have done. We notified Nat West, like all other creditors of our position. We were asked to supply statement of our income which we did then heard nothing further for several months as we had relatively small overdrafts on both accounts and a business loan with them (in my name) which we have continued to pay.

We started paying £5 towards the limited company overdraft as we had hear nothing and were being charged interest etc. and we paid some off the personal account.

About 3 months ago we were contacted by a Specialsed relationship manager who said he needed to put all the debts together and we got a letter calling in all the monies including the load. I said I couldn't understand how the limited company debts and my debts could be bundled together. He asked me to take out a loan to pay off the overdrafts. I borrowed some money to pay off the personal overdraft and eventually he conceded that the limited overdraft and the personal loan could not be bundles together.

The loan is now safe but we are being threatened with court if we do not pay off the limited company overdraft.

I am wondering if there is anything we can do about this.

I have written asking for proof that we have liability beyond the limited company liability but suspect that we did have to sign something to take that on board.

All this time, since we have written to then originally we have been charged interest and in fact most of the outstanding money is made up of interest and charges. The amount owing is less than £3000 not a lot to the bank but a big chunk for us in our current position.

Any advise recieved with great thanks an appreciation.

[EXC]

Re: Hounded by bank

I wouldn't be much help.

Anyone?

[alsagerman]

Re: Hounded by bank

Any debts owed by a ltd co to another business are, as the term suggests, ltd to that business. When opening a business account you will normally have to sign to state that YOU are responsble for any debts owed to the bank i.e. overdrafts. Banks like to trick you into accepting a loan to cover an overdraft as they can then pursue the loan repayment more easily. A business debt i.e. overdraft, is not pursuable in the same way and is more expensive for the bank to chase.
Banks, as we know, do not operate with our interests at heart. They are nothing more than shiny shoe'd, smart suited salesmen (and women) who's sole aim is to make money off the backs of other hard working people. Most business managers have absolutely no real world experience and no idea of how to run a business other than the training manuals supplied when they fell out of the school yard gates.

Sorry, rant over. In short, they've had you over and there's nothing you can do about it other than continue with the payments your already making. They cannot however get monies you don't have.

[teaboy2]

Re: Hounded by bank

If the limited company loan was in the name of the limited company then the company is a seperate entity to you, just as you are from me and therefore they should not be bundling the two together, if they did then it maybe a case of contractual misrepresentation.

Though that would only be useful if, and only if, there is no clause in the company loan agreement that allows the bank to hold yourselve liable for the companies debt. Same for the agreement, if bundled together with your personal account, not having a statement where or clause that you acknowledge the liability of the company account, though you could argue that, as stated above, as misrepresentation of contract by their representative.

So its yes and no, and as Alsagerman suggested - It all depends on the terms, clauses and statments/acknowledgements in the loan agreements themselves.

[SpringerSpaniel]

Re: Hounded by bank

Can you scan and post the agreement on here ? It would be easier to discuss it sensibly and hopefully be some help having read the Teerms and Conditions.