Credit card debt from Ltd Company account advice.

styeffo · 6 March 2008 at 5:05PM

Hi i was wondering whther anyone can help....

I was the main card holder of a card for a Ltd company, the company ceased trading in Sept '07

I had spoken to MBNA as regards the account as was told there was no personal liability attached to it....

I have received a letter today from Link Financial stating that they now own the debt and want payment immediately (3.5K), what are my options seeing as i have no funds to hand, and to be honest did not anticipate this.....

all help gratefully received.....

Viks · 6 March 2008 at 5:10PM

The letter should be addressed to the company. And if the company has liquidated then it is likely you have no connection as it is a limited company.

styeffo · 6 March 2008 at 5:26PM

Viks wrote: »

The letter should be addressed to the company. And if the company has liquidated then it is likely you have no connection as it is a limited company.

Hi Viks....well the company is as far as i know still an "entity" as we had no funds to close it with, i struggled on for a bit and in the end left as i had been given an option of employment, the other directors continued to trade for about 2 months after i had left.

I de registered myself as a director in Aug '07, and as far as i was aware the others were still trying to get funding to continue, until it later closed.

Does this help you at all?

NickX · 6 March 2008 at 5:56PM

Limited Companies are legal entities in their own right.

If the card was registered to a Limited Company, the debt belongs to the Company and not to an individual.

The Debt Collectors should be advised that the debt belongs to the company and as you are no longer a director of the company you have no legal responsibility for the debt.

Remember these Debt Collectors are the scourge of society and will pull all sorts of tricks and threats to get debts repaid, most of them having no standing in the UK legal system.

styeffo · 6 March 2008 at 6:26PM

NickX wrote: »

Limited Companies are legal entities in their own right.

If the card was registered to a Limited Company, the debt belongs to the Company and not to an individual.

The Debt Collectors should be advised that the debt belongs to the company and as you are no longer a director of the company you have no legal responsibility for the debt.

Remember these Debt Collectors are the scourge of society and will pull all sorts of tricks and threats to get debts repaid, most of them having no standing in the UK legal system.

Thanks for this, it's kinda what i thought but always best to ask....

styeffo · 7 March 2008 at 7:08AM

NickX wrote: »

Limited Companies are legal entities in their own right.

If the card was registered to a Limited Company, the debt belongs to the Company and not to an individual.

The Debt Collectors should be advised that the debt belongs to the company and as you are no longer a director of the company you have no legal responsibility for the debt.

Remember these Debt Collectors are the scourge of society and will pull all sorts of tricks and threats to get debts repaid, most of them having no standing in the UK legal system.

So a letter explaining the situation will be my first step, what do you think of its chances of success...?

NickX · 7 March 2008 at 9:38AM

A strongly worded letter is a good idea. It is up to you how strong you wish to make it, but personally I wouldn't mince my words. My basic points would be :

(1) I do not accept any responsibility for this debt.

(2) The debt is with a Limited Company that I have no association with.

(3) I trust that you will not need to contact me again, but if you do I would request that all communications are put in writing. Other forms of communication will be deemed as harassment.

Basically give them a dose of their own medicine. I did this once with regard to a debt that didn't belong me and they never contacted me again.

Good Luck.

chappers · 7 March 2008 at 11:02AM

styeffo wrote: »

So a letter explaining the situation will be my first step, what do you think of its chances of success...?

Who knows,with regards to the letter, but legally the debt is with the company not you, they can do nothing to make you pay personally

styeffo · 15 March 2008 at 3:13PM

1 week since letter sent.....*waits*

styeffo · 16 July 2008 at 8:37AM

Received a postcard about a week ago, rang them and spoke to a chap who had no idea what he was on about.....

This week they have rung my work mobile twice after being told i was on holiday and have rung my home twice.

I sent the letter advising that ALL contact must be in writing, but by replying to them by phone have i in some way negated that request?

I am counting the phone calls etc, as i have informed them i will regard this as harassment....

What powers do they have?

NickX · 16 July 2008 at 1:02PM

4 months on and they have called you - did you have any other correspondence from them during this 4 month period ?

They should NOT have called you if you have requested contact in writing only. Debt Collectors are sneaky and will try all sorts if they think they can get away with it.

I would advice writing again, stating that by not adhering to the agreement to keep communication in writing they are in fact harrassing you and you intend to report them to Trading Standards, the Office of Fair Trading and the local police.

Whatsmore, you do not acknowledge this debt in anyway because its liability lies with a Limited Company of which you are not a shareholder or a director. Have they provided any evidence whatsoever to suggest that you should be liable ?

IMO they are trying it on again and should not be allowed to get away with it.

Credit card debt from Ltd Company account advice.

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