Bounce back loan repayment demand

strawb_shortcake

Grumpy_chap said:

MattMattMattUK said:

would have had to purchase them in their personal name
account for the win as a personal win as they can not be a business purchase

Confirmation as we know.  Premium Bonds have to be a personal purchase, so any win is personal.  The purchase had to be from funds suitably drawn from the business prior to purchase.
The OP implied they had bought the Premium Bonds from business funds still in the business, which is where the difficulty comes in.  (Plus breaching the TSB own rules.)

The OP's best route is to drawn the funds from Premium Bonds and repay the BBLS.

I interpreted the OP that they have now withdrawn the money from PB's and used them for their intended purpose 

"1,because i used the loan to buy premium bonds whilst waiting until i needed to use it ,which i have done now."

Grumpy_chap

annabanana82 said:

I interpreted the OP that they have now withdrawn the money from PB's and used them for their intended purpose 

"1,because i used the loan to buy premium bonds whilst waiting until i needed to use it ,which i have done now."

That's deeply unfortunate.  The OP needs to find some more money to repay TSB.

The_Fat_Controller

PB accounts are personal, not business, breach of Ts and Cs
You also closed the required business account, breach of Ts and Cs
You have dug your own hole !

strawb_shortcake

Grumpy_chap said:

annabanana82 said:

I interpreted the OP that they have now withdrawn the money from PB's and used them for their intended purpose 

"1,because i used the loan to buy premium bonds whilst waiting until i needed to use it ,which i have done now."

That's deeply unfortunate.  The OP needs to find some more money to repay TSB.

I quite agree 

Mikki4321

Thanks for replys ,when we closed the buisness account at the tsb branch ,we informed them why we were closing ,(because we didn't need it ,only opened one to apply for the bbl,and used tsb current account for buisness, as a sole trader,and was told this was ok ,and have had 4 months of tsb courtesy calls asking if all ok in these current times ,no mention of any problem.
And as for the premium bonds ,it just seemed sensible ,as no interest in any accounts ,and wouldn't need to use the bbl right away ,which was also ok .it doesnt say anywhere where i can't invest ,as long as funds when used are used for business, which they have been .

Jeremy535897

Grumpy_chap said:

MattMattMattUK said:

would have had to purchase them in their personal name
account for the win as a personal win as they can not be a business purchase

Confirmation as we know.  Premium Bonds have to be a personal purchase, so any win is personal.  The purchase had to be from funds suitably drawn from the business prior to purchase.
The OP implied they had bought the Premium Bonds from business funds still in the business, which is where the difficulty comes in.  (Plus breaching the TSB own rules.)

The OP's best route is to drawn the funds from Premium Bonds and repay the BBLS.

I think OP has cashed in the bonds and spent the money on business expenses, hence the problem. Prizes on premium bonds are tax free. Premium bonds held in a sole trader business would not qualify for inheritance tax business property relief, which may be what your concern is, but that is not the issue. My arguments would be:

• point 1 is wrong, because the premium bond investment was a temporary holding mechanism only, and the funds were later spent on business items (according to OP)
• TSB were negligent in allowing the account to be closed without explaining that this would cause the BBL to be repaid in full

MattMattMattUK

Mikki4321 said:

Thanks for replys ,when we closed the buisness account at the tsb branch ,we informed them why we were closing ,(because we didn't need it ,only opened one to apply for the bbl,and used tsb current account for buisness, as a sole trader,and was told this was ok ,and have had 4 months of tsb courtesy calls asking if all ok in these current times ,no mention of any problem.

That is also a breach of the terms and conditions, you are not allowed to use a personal account for business.

Mikki4321 said:

And as for the premium bonds ,it just seemed sensible ,as no interest in any accounts ,and wouldn't need to use the bbl right away ,which was also ok .it doesnt say anywhere where i can't invest ,as long as funds when used are used for business, which they have been .

You are correct in that it does not say that the funds can not be used to invest, it also does not say that the funds can not be used for terrorism, explicit exclusion does not mean explicit approval for that usage. Premium Bonds are a personal investment, the BBL is granted for business purposes, there is a distinction. 

Jeremy535897

MattMattMattUK said:

Mikki4321 said:

Thanks for replys ,when we closed the buisness account at the tsb branch ,we informed them why we were closing ,(because we didn't need it ,only opened one to apply for the bbl,and used tsb current account for buisness, as a sole trader,and was told this was ok ,and have had 4 months of tsb courtesy calls asking if all ok in these current times ,no mention of any problem.

That is also a breach of the terms and conditions, you are not allowed to use a personal account for business.

Mikki4321 said:

And as for the premium bonds ,it just seemed sensible ,as no interest in any accounts ,and wouldn't need to use the bbl right away ,which was also ok .it doesnt say anywhere where i can't invest ,as long as funds when used are used for business, which they have been .

You are correct in that it does not say that the funds can not be used to invest, it also does not say that the funds can not be used for terrorism, explicit exclusion does not mean explicit approval for that usage. Premium Bonds are a personal investment, the BBL is granted for business purposes, there is a distinction. 

Requesting repayment of a BBL for these reasons is out of all proportion. The money has now been spent on business expenses, according to OP, and the appropriate remedy for closing the account, if it is such a big deal, is to open it again.

If they continue to be difficult, you can complain:
"What if I want to complain about my loan under the Bounce Back Loan Scheme?
If you need to make a complaint you have the option to contact the lender who will be able to give you details of their standards complaints process and, if you are not satisfied, you can contact the Financial Ombudsman Service."

Mikki4321

I am sorry ,but actually you are allowed to use a current account for your buisness transactions .
  what i should have added was that you are allowed to invest if funds not needed right away,and funds eventually used for the buisness ,which they have been .
i was just staiting that there are no kinds of "investments " that are excluded and being law abiding and sensible, terrorism as a form of investment hadn't entered my head .

The_Fat_Controller

@Mikki4321, didn't it occur that needing a business account to receive a BBL meant it needed to be kept open to keep that eligibility ?
I guess you just didn't bother to either check or read the Ts and Cs