No bank account and cant open one so no BBL?

danielle_128

bazzyb said:

Where did you bank your income from your trading from 14th February until lockdown?

I was using Transferwise for both business and personal as I have been back and forth many different countries these past few years so its very convenient

Jonesy1977

danielle_128 said:

As far as I can see, what has happened here is this:

The banks have taken billions from tax payers and are doing their best to hold on to that money. The scheme was intended to help those whose business has been affected by coronavirus.
There is a strong case for people to complain - Id suggest speaking with all of the banks and recording or getting communications in writing before proceeding to complain.
If you are being refused a BBL because you are unable to open an accoun then that bank is trying to hold on to tax payers money which is intended to help businesses affected by coronavirus.
Please read the below:

In particular, the FCA said there was no requirement in BBLS for lenders to conduct creditworthiness or affordability checks, contrary to the FCA’s normal rules on creditworthiness assessments for regulated credit agreements.

The FCA said it understood the FOS would take into account the schemes’ requirements when handling any complaints, and asked the ombudsman to acknowledge that the schemes require lenders to take a different approach to lending. In its reply (1 page / 169KB PDF), the FOS made the required confirmation.

Separately, the Lending Standards Board (LSB) issued an update on how its Standards of Lending Practice for business customers give effect to the requirements of the BBLS.

The banks have not taken Billions of pounds of tax payers money.  The banks are lending money to legitimate business which need capital to survive, this is backed by a guarantee by UK Gov scheme BBB at 100% of liability.  What you want is to access this guarantee, you want the BBB to guarantee that you will not be held liable personally in the event that you fail.  Your business has 0 track record and no bank account, your business only came into existence in February 2020. You have a poor personal credit rating (by your own admission), and you have debt which you would like to repay using funds acquired under the BBL scheme (by your own admission) .  If I understand correctly, you want to use BBL to consolidate your personal debt, fund your lifestyle and afford you the opportunity to build a non existent business from scratch in a dead economy (your words) .  Setting up a business that cannot get off the ground using debt that you are not responsible for sounds like a great idea, but very very unlikely to work, and you would certainly be in breach of the terms of the loan by transferring money to yourself personally and using it to pay off debt. I truly empathise with your situation, but you need to focus on generating an income not taking on more debt.

dunstonh

As far as I can see, what has happened here is this:
The banks have taken billions from tax payers and are doing their best to hold on to that money.

That is wrong.

The banks have not taken billions from the tax payers.   The banks are supplying the credit for the BBL.   It is only if BBLs fail and recovery via normal means is not possible that the banks then turn to the treasury.

There is a strong case for people to complain 

You do not have a strong case to complain.  Indeed, what you actually proposed in your initial post was potentially fraud.  

1 - using the BBL to then draw money from a company to pay for personal debts.    

2 - applying for a BBL despite never actually trading.

3 - Wrongful trading rules would be breached.

In particular, the FCA said there was no requirement in BBLS for lenders to conduct creditworthiness or affordability checks, contrary to the FCA’s normal rules on creditworthiness assessments for regulated credit agreements.

The BBL is not credit scored or credit assessed.    However, bank accounts are.  And a bank is within its rights to refuse banking facilities.

danielle_128

Jonesy1977 said:

danielle_128 said:

As far as I can see, what has happened here is this:

The banks have taken billions from tax payers and are doing their best to hold on to that money. The scheme was intended to help those whose business has been affected by coronavirus.
There is a strong case for people to complain - Id suggest speaking with all of the banks and recording or getting communications in writing before proceeding to complain.
If you are being refused a BBL because you are unable to open an accoun then that bank is trying to hold on to tax payers money which is intended to help businesses affected by coronavirus.
Please read the below:

In particular, the FCA said there was no requirement in BBLS for lenders to conduct creditworthiness or affordability checks, contrary to the FCA’s normal rules on creditworthiness assessments for regulated credit agreements.

The FCA said it understood the FOS would take into account the schemes’ requirements when handling any complaints, and asked the ombudsman to acknowledge that the schemes require lenders to take a different approach to lending. In its reply (1 page / 169KB PDF), the FOS made the required confirmation.

Separately, the Lending Standards Board (LSB) issued an update on how its Standards of Lending Practice for business customers give effect to the requirements of the BBLS.

The banks have not taken Billions of pounds of tax payers money.  The banks are lending money to legitimate business which need capital to survive, this is backed by a guarantee by UK Gov scheme BBB at 100% of liability.  What you want is to access this guarantee, you want the BBB to guarantee that you will not be held liable personally in the event that you fail.  Your business has 0 track record and no bank account, your business only came into existence in February 2020. You have a poor personal credit rating (by your own admission), and you have debt which you would like to repay using funds acquired under the BBL scheme (by your own admission) .  If I understand correctly, you want to use BBL to consolidate your personal debt, fund your lifestyle and afford you the opportunity to build a non existent business from scratch in a dead economy (your words) .  Setting up a business that cannot get off the ground using debt that you are not responsible for sounds like a great idea, but very very unlikely to work, and you would certainly be in breach of the terms of the loan by transferring money to yourself personally and using it to pay off debt. I truly empathise with your situation, but you need to focus on generating an income not taking on more debt.

Spot on

danielle_128

I think the moral of the story here is dont ask the internet

mattyprice4004

danielle_128 said:

I think the moral of the story here is dont ask the internet

I'd amend that slightly - 'don't ask the Internet if you only want answers that suit you' 
What you've got is the truth, the fact that it isn't what you wanted to hear doesn't make it wrong. 

danielle_128

Does anyone have anything constructive, helpful or informative to add to this thread?

dunstonh

danielle_128 said:

Does anyone have anything constructive, helpful or informative to add to this thread?

There is nothing that can be said that "you" would consider helpful.  

Caz3121

danielle_128 said:

 I am in a dead economy all original prospects dried up, finding it harder to find potential customers 

If you had had a business account and qualified, with one sale in 6 months and nothing on the horizon, what figure would you have planned on using as projected turnover on your application? 

Jonesy1977

danielle_128 said:

Does anyone have anything constructive, helpful or informative to add to this thread?

@danielle_128 You might not like the responses but if you look carefully and hear what is being said, you may save yourself time and effort that you should really be using to generate an income.  You have not worked since September, your business has not yet got off the ground and we are heading into a recession.  I really think the most constructive thing that you can do at this point is look for alternative sources of income.  You are not eligible for a BBL for all the reasons discussed, you have no chance of pursuing a complaint against "all of the banks" and even if you did somehow manage to gain access to the loan, you would breach the terms if you did what you suggest and ultimately become personally liable.  At best you would have a loan that you would struggle to repay for years to come.  I wish you well, but I doubt you will get any support for your plan here.