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Bank has put a Charge against our company incorrectly

edited 30 April 2020 at 2:11PM in Mortgages & Endowments
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JackieOJackieO Forumite
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MoneySaving Newbie
edited 30 April 2020 at 2:11PM in Mortgages & Endowments
Hi,
We are a limited company and I've just realised our bank put an incorrect Charge against our company back in 2015 and it is listed on Companies House. 
We have not taken out any lending against the company.  How is this ok?
Firstly they cant tell me why it is there, or what purpose it is on there for.  I've been told it could take them up to 4 weeks to remove this which I believe is unacceptable considering we should not have a charge against us in the first place.
Does anyone know what position I am in for compensation please?
Thanks
Jackie  

Replies

  • edited 30 April 2020 at 4:22PM
    ThrugelmirThrugelmir Forumite
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    edited 30 April 2020 at 4:22PM
    Why do you believe that the company is entitled to compensation? What loss has been suffered? 
    What services has the bank provided to the Company? Overdraft facility, even if unused? 
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • dunstonhdunstonh Forumite
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    We have not taken out any lending against the company.  How is this ok?

    Sometimes this happens if there is the potential for credit in the future.   It is normally part of the account setting up process and agreed at the time.  Many companies never need it activated and it just sits there just in case.

    Does anyone know what position I am in for compensation please?

    Probably zero.

    Have you lost out financially as a result of this?  if yes, then you present the bank with your costs.  If you have not lost out financially then there is nothing to recover.

    So, how much have you lost?

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • csgohan4csgohan4 Forumite
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    what loss will you suffer in 4 weeks for it to be removed? Baring in mind the current crisis?

    You will have it removed in 4 weeks, I would move on. If not put in a complaint to the bank, you may get a token gesture
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ PIxie/ Bowelhead99 RIP
  • davidmcndavidmcn Forumite
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    JackieO said:
    We are a limited company and I've just realised our bank put an incorrect Charge against our company back in 2015 and it is listed on Companies House. 
    We have not taken out any lending against the company.  How is this ok?
    If I had to choose between (1) bank somehow managed unilaterally to register a charge against a company and (2) company forgot that five years ago they signed something which included the grant of a charge in favour of the bank, I'd go for (2) any time.
  • kingstreetkingstreet Forumite
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    So what exactly has it taken a charge over?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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