Will banks write of debt??????

Rooster_Norwich

Hi Guys,

my business failed ( online E-commerce) basically priced out the market and far too much competition. Left me with £12k overdraft. when my limit was £5k

Bank ( HSBC ) aren't exactly helping much, asked them for help and all they offered was a managed loan at a huge rate of interest around 19%

Has anyone ever had any success with the banks in asking for some of the debt to be written off?

I know credit card companies will often, before an account defaults, offer the debtor a reduced figure to settle in full before passing this to a third party.

Wondered if anyone had asked the banks this and actually done it?

OberonSH

If you have enough cash to offer a figure, the only thing you can do is asked. My business loan has been passed onto a collecton company, they're refusing my offered payments but at least they've frozen the interest.

You can but ask, so I would contact them and see what they say.

Rooster_Norwich

Well I asked and they said to put my proposal in a letter and it would be passed onto the credit control team.

Not a Blatant no, but then again not a blatant yes. Like, you said, you can but ask.

BAILIFFCHASER

Client ref
Your reference :
Client reference :

Dear sir/madam

With reference to the above account, I am writing to confirm I am not acknowledging this debt.would you please send me a true copy of this credit agreement. I understand that under the Consumer Credit Act 1974 (Sections 77−79), I am entitled to receive a copy of my credit agreement on request and this should be supplied within 12 working days. I enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.
Please note that under Section 189 you are obliged to supply these documents whether you are the original creditor or not. I await your reply

depending on how old your agreement ws you could always send the bank the above letter and see if they can produce a credit agreement if not you can just walk. also if you have any illegal bank charges you could always go after them as well.

Rooster_Norwich

Yes, but if I'm over my agreed Overdraft limit, can't they legally chase me for that or is it the banks problem for letting me go over my agreed limit. In which case I can only claim back what is owed over the agreed limit.

Is that correct?

BAILIFFCHASER

Firstly find out if there is a agreement in existance. If not then they cant do anythinglike enforce it etc !!!!!

tomterm8

Is the account a business acount? If so, the Consumer Credit Act does not apply.

BAILIFFCHASER

Same principal as a personal account !!!!

tomterm8

I disagree. The same principals do not apply between a business acount and a consumer account covered by the CCA.

if you are a sole proprieter/ Partnership then you're right to an extent. You can use the data protection act, but not the CCA.

There is no statutory right of access for a limited businesses (you are legally required to keep bank statements anyway).

When reclaiming the charges you SHOULDN'T use the standard consumer templates, which reference the unfair terms and conditions act, you need to use business templates which reference common law.

In particular Dunlop Pneumatic v New Garage [1915] AC 79.along with Murray v. Leisure play [2005] EWCA Civ 963.

The CAG has appropriate business templates at http://www.consumeractiongroup.co.uk/forum/bank-templates-library/64975-business-claims-basic-guide.html . You need to register to read them.

If you use these templates, you will probably get your money back. If you use the CCA and the Unfair terms act you will not.

You should also be aware that there are tax implications for businesses that are different for consumers.