Business Advice on Ex Business Partner & HSBC

allie1965

6 years ago I set up in busines with a good firend of mine whom I had know for 20 years+. We applied to HSBC for a business loan of 20K. This loan was given to us as a secured loan. Some years later after my business partner decided to take all money from the business as she was in financial crises (without asking by the way) She then informed me that she has CCJ's and massive debts to various other organisations i.e. DHL and her own personnal loans. She has apparently been in this situation for many many years. I am just wondering if HSBC were guilty of selling a loan to us both, surely they would have done a credit score on her? No one from HSBC gave any negative feed back to us at the time. If I had not worked alll the hours possible to carry on paying the laon they would have come after me to pay if back as I own a house she does not have an assets. Would I be able to claim from HSBC.

Mistral001

Why blame the bank. If it is not theft on the partners part, it certainly is a breach of the partnership agreement I should have thought. The fact that you are not willing to go to the police or take action for breach of contract with your partner is not the bank's fault. The reason that you have partnership agreements is that if one partner does something like this you are protected by law. The bank will just point to the partnership agreement and ask why are you not taking proceedings agaist your partner in business. Afterall the bank probably would not have given two people such a loan without a partnership agreement.

paddyrg

I would imagine the loan agreement says 'jointly and severally' somewhere - ie they can chase either party for the full amount.

antrobus

allie1965 wrote: »

.., surely they would have done a credit score on her?

Quite possibly, yes. But they would have had no business in telling you about it. In fact, if you'd have asked HSBC at the time, they would have refused to answer.

allie1965 wrote: »

.., Would I be able to claim from HSBC.

I don't think so. You can obviously speak to a real professional type solicitor to see what they say. Indeed, given the circumstances, it might be a good idea to speak to a real professional type solicitor anyway as regards your former business partner.

Is the business still going?