Business Overdraft now with DLC

[outadebt]

Hi

My business ceased trading in 2008 leaving me with a business OD which I had personally guaranteed – since then I had been paying a monthly amount as agreed with the bank to Lester Aldridge. I recently received a letter from Lester A. telling me the outstanding business loan/overdraft is “now owned by our client Hillesden Securities Ltd t/a DLC” and a follow up letter to the same effect from DLC. Apart from the annoyance of companies moving debt as they want – is there any way I can get DLC to validate the outstanding balance is enforceable as you can with a credit card, i.e. Section 77/78 letter, also they have provided an outstanding balance but again can I get them to validate how this figure was derived?

Kind regards

[Ripped-Off]

Re: Business Overdraft now with DLC

Was your guarantee actually a guarantee or an indemnity?

An indemnity is simply a means of paying another for losses they incur and is an obligation in its own right, whereas a guarantee is viewed as a secondary obligation (i.e. it only activates on default of the debt) which guarantees the obligation to repay if the company defaults.

Guarantees are subject to requirement of the statute of Frauds Act 1677 (yep 1677. You can view the Act on legislation.gov, it's written in ye olde English). That means there are strict rules, one of which is consideration; that is, you provide something of value to the bank and they provide something of value to you. As there was no consideration given from the bank to you (that is the presumption) the guarantee would have to be executed and delivered as a deed. Was it?

We are currently assisting an OP with a similar problem......http://legalbeagles.info/forums/show...ht=#post638934

[outadebt]

Re: Business Overdraft now with DLC

Hi

for me the primary issue is I do not any documentation pertaining to this - so going from memory alone which is why I wondered how I can force the DCA to validate the claim? I have been paying for many years now so the OB is under 2k so might be simpler to pay to make this go away unless I can force proof from DCA that I must.

Kind regards