RBS unfair treatment

JanetMay

Hi, I have a situation whereby four partners entered into business loan from RBS to buy a property. After a couple of years it was necessary to sell the property at a £20k loss. One partner is repaying her quarter of the debt to RBS ie £5k and I have asked RBS for the same repayment plan but have been ignored, instead I received a court application, the outcome of which is that I must repay all of the £20,000. It seems that they have not pursued two of the partners, allowed another one to repay her quarter and demanding that I pay the whole amount even though one quarter is already being repaid. RBS will not respond to me saying they are unable to discuss any of the other three partners. I now have a charge put on my home. I’m completely at a loss what to do, every time I ask why I have been selected to repay it just triggers another letter demanding money. I appointed a solicitor but RBS told them the same...we won’t discuss any of the other partners with you and your client must repay total amount? Surely this can’t be right...I don’t know how to get to talk to anyone who can explain how this procedure is fair? I also went to the ombudsman, outcome was yet again, RBS won’t discuss any of the other partners.... stalemate.

[Deleted User]

JanetMay wrote: »

Surely this can’t be right...

It surely can.

The partners don't have a 'quarter'.

They are all jointly and severally responsible for the debt. The bank can go after any combination of debtors that they believe will get them their money back.

They cannot get collect more than the outstanding capital and interest though, so depending on how the other partner pays, your contribution may be reduced (or theirs).

molerat

You need to speak to the others to get them to cough up their fair share. The bank will go after the easiest target as they are legally entitled to and you agreed to. If the others have made themselves invisible or have not got a pot to !!!! in then the one with tangible assets will end up getting stiffed. You need to go into joint and several liability transactions with your eyes wide open.

System

JanetMay wrote: »

I now have a charge put on my home. I’m completely at a loss what to do, every time I ask why I have been selected to repay it just triggers another letter demanding money. I appointed a solicitor but RBS told them the same...we won’t discuss any of the other partners with you and your client must repay total amount? Surely this can’t be right.

It is right and if you'd bothered to read the small print when you were signing up it would explain very very clearly that you were all jointly liable for the whole amount. What you have to do is find £!5k or £20k if the others aren't paying and then pursue them for their share.

bris

The easy target was you, nothing personal but simply because you have a house they could put a charge on. Debts now secure.


The bank doesn't see a quarter, they can chase one or all.


Pay it asap, sue the other partners if you have to because that secured debt has interest added every year so the 20k can soon mount up.