Wescott trying to collect a debt I do not owe

yodstarr

Hi
Im being chased for £3000 by Wescott Debt Agency who say they have been instructed by Lloyds Bank PLc to collect the debt owed to them by me as Guarantor to a company bank account.

The company in question was originally set up by me over 10 years ago and I resigned from said company four years ago. This was registered with companies house and Lloyds were informed in writing. The company no longer exists and the current owner has debts due to its collapse, the owner has also called Wescott and Lloyds to explain the situation and take on the debt but neither will acknowledge this. Funny that! they must know theres no chance of getting money from him!!

Lloyds deny ever being informed and have said they will still persue the debt. I have sent Lloyds and Wescott copies of the companies house record of my dissolution and copies of the original letter sent to Lloyds informing them of departure from the company.

They say unless I had a response from them I should have known it had not been received or accepted. Why would I know this?? Im no banker!!!!

In my view I have no ties to the organisation and stepped down at a time when it was very financial stable so this debt is not mine.

I have told them Ill go to court and fight it. Can anybody tell me if this is the right thing to do.

thnx

anh1904

You need some legal advice, but resigning form the company may not be enough to remove your personal guarantee made ot the bank when you signed as a guarantor on the bank account.

If I understand correctly, you had to give personal guarantees to the bank because of limited or no trading history at the time the account was set up?

I'm sure there are legal experts on here, so hopefully somoen will clarify, but if you are still on half decent terms with the remaining directors, perhaps you could discuss some means of resolving this situation in a way that is acceptable to all.

anh1904

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790036

You should always be careful when giving personal guarantees. Where possible ensure that they only apply to specific debts or loans. A widely drawn guarantee could render you liable for all of the losses of the business. However, under the Banking Code, guarantees given in support of bank account borrowing must not be for an unlimited amount.