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Forced to take out a personal guarantee
steverandall1965
Posts: 3 Newbie
in Loans
Background:
In 2001 i started a limited company, i employed one person and did most of my work in Ireland, as such i received my payments in Euro's. During 2004 the amount of money coming in Euro's was quite high, but as is the case my outgoings were also high. My bank (the worlds local bank) allowed me to draw on funds straight away, however they did ask for a personal guarantee from myself to the tune of £10,000. I resisted as long as i could but eventually my bank told me i could not pay in to my account in euro's unless i signed the guarentee, as i had wages to pay i was left with no choice but to sign. however since then my company has ceased trading.
The problem:
About 2 months ago the bank wrote to me calling in the loan, unfortunately i buried my head in the sand and ignored the letters, the bank have now passed on the loan to a collection agency, i have now set up a standing order to pay back the loan at £100 per week.
My question:
Did the bank use unfair means to get me to sign a personal guarantee when i was operating as a limited company, if it was unfair would the debt remain with my (ceased trading) company?
In 2001 i started a limited company, i employed one person and did most of my work in Ireland, as such i received my payments in Euro's. During 2004 the amount of money coming in Euro's was quite high, but as is the case my outgoings were also high. My bank (the worlds local bank) allowed me to draw on funds straight away, however they did ask for a personal guarantee from myself to the tune of £10,000. I resisted as long as i could but eventually my bank told me i could not pay in to my account in euro's unless i signed the guarentee, as i had wages to pay i was left with no choice but to sign. however since then my company has ceased trading.
The problem:
About 2 months ago the bank wrote to me calling in the loan, unfortunately i buried my head in the sand and ignored the letters, the bank have now passed on the loan to a collection agency, i have now set up a standing order to pay back the loan at £100 per week.
My question:
Did the bank use unfair means to get me to sign a personal guarantee when i was operating as a limited company, if it was unfair would the debt remain with my (ceased trading) company?
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