We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Bank Interest & charges on business overdraft

charlesiam
Posts: 2 Newbie
Hi
I'm new to this forum and am looking for some advice please.
My husband and I used to jointly own and run a business, which ceased trading 7 years ago, because of financial difficulty. We were left with a bank overdraft which we have been unable to pay off since.
The overdraft was around 28K and we stopped using the account immediately the business ceased trading, no transactions other than the addition of interest and bank charges have taken place, but over this 7 years the amount has grown to almost 58K, the bank interest and charges being almost 30K.
The bank hold the deeds of a small piece of land which we own as security on the overdraft and we have recently put it on the market, but it's looking like it's only going to make around 45K.
We have another bank loan with a different bank of 15K which we had wanted to clear as well from the land sale, so have made the first bank an offer of full and final settlement of 30K, but they have refused, saying that they want all of the proceeds of the land sale.
I know that in theory they are probably entitled to it all, but do we have any case for arguing against the 30K bank interest and charges made on the account over the last 7 years?
Thankyou in anticipation of a reply.
I'm new to this forum and am looking for some advice please.
My husband and I used to jointly own and run a business, which ceased trading 7 years ago, because of financial difficulty. We were left with a bank overdraft which we have been unable to pay off since.
The overdraft was around 28K and we stopped using the account immediately the business ceased trading, no transactions other than the addition of interest and bank charges have taken place, but over this 7 years the amount has grown to almost 58K, the bank interest and charges being almost 30K.
The bank hold the deeds of a small piece of land which we own as security on the overdraft and we have recently put it on the market, but it's looking like it's only going to make around 45K.
We have another bank loan with a different bank of 15K which we had wanted to clear as well from the land sale, so have made the first bank an offer of full and final settlement of 30K, but they have refused, saying that they want all of the proceeds of the land sale.
I know that in theory they are probably entitled to it all, but do we have any case for arguing against the 30K bank interest and charges made on the account over the last 7 years?
Thankyou in anticipation of a reply.
0
Comments
-
Charges and interest rates are all down in the T&C's you rightfully agreed to.0
-
Why have you left it so long to sort it out??????
F40 -
The land belongs to our house which we had put on the market over 4 years ago. At that time the house had around 200K equity and the bank was happy to wait until the house (with the land) was sold to get their money, but just after we put the house on the market, the housing market collapsed because of the credit crunch and today we are left with a house in negative equity. We thought that it would only be a short time before the market recovered, but obviously this has not happened and it is now apparent that it is unlikely to within the forseeable future....so we thought we'd try to sell the land seperately to try and square up the bank.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards