Bounce back loan- provider too busy to set up feeder account

amiller83

Hi,
I'm currently trying to apply for a bounce back loan, which I’m eligible for. My bank (Barclays) refuses to take my application as I use a personal account, insisting I set up a business ‘feeder’ account first. The problem is, no matter how many times I ring they haven’t got any appointments available, and the deadline is fast approaching. If they don’t allow me to apply, would I be able to take them to small claims court? It seems that all that stands between my business and government support is my banks lack of organisation/staff.
Any advice welcome!

[Deleted User]

No, you can't take them to small claims court.

Or rather, you could, but you would lose.

MattMattMattUK

amiller83 said:

Hi,
I'm currently trying to apply for a bounce back loan, which I’m eligible for. My bank (Barclays) refuses to take my application as I use a personal account, insisting I set up a business ‘feeder’ account first. The problem is, no matter how many times I ring they haven’t got any appointments available, and the deadline is fast approaching. If they don’t allow me to apply, would I be able to take them to small claims court? It seems that all that stands between my business and government support is my banks lack of organisation/staff.
Any advice welcome!

You have grounds to take them to court, they do not have to conduct any business with you, especially as you were in breach of your personal account terms and conditions by using it for business purposes.

Your best option is at this stage going to be be to plan to not be able to obtain a BBL, in all likelihood that ship has long sailed. 

amiller83

Hi,
Thanks for the feedback, although as far as i’m aware I’m not breaching the terms of my personal account as I’m a sole trader.
Anyway, point taken, thanks again 👍

2021BJ

amiller83 said:

Hi,
Thanks for the feedback, although as far as i’m aware I’m not breaching the terms of my personal account as I’m a sole trader.
Anyway, point taken, thanks again 👍

https://www.barclays.co.uk/content/dam/documents/personal/site-hygiene/PreNov20_BAR_9910542_UK 10.18.pdf

7 Is it OK to use my personal account for business? Accounts covered by the terms in this booklet are all for your personal use and not for money relating to any business you run. We can close an account (or stop providing a service) if we find out you are using it for non-personal use, or are not eligible for it. We’ll try to tell you in advance if this happens, but if we were breaking any rules or laws by continuing to offer you the account or service, we would have to close or stop it immediately. If you need a business account, have a look at barclays.co.uk/business to see the accounts we offer. 

Not sure why you'd think there is a distinction for sole traders (business is business) but there isn't.

MattMattMattUK

amiller83 said:

Hi,
Thanks for the feedback, although as far as i’m aware I’m not breaching the terms of my personal account as I’m a sole trader.
Anyway, point taken, thanks again 👍

It is irrelevant if you are a sole trader or not, business use still requires a business account.

Your account is just for personal use.

The terms in this booklet cover only accounts for personal use. They’re not for money relating to any business you run. We can close an account (or stop providing a service) if we find out you are using a personal account for non-personal use.

https://www.barclays.co.uk/important-information/personal-terms-conditions/

amiller83

Well, that’s news to me. Barclays informed me that it is pretty common for a sole trader to use a personal account, plenty of other people appear to be doing the same - hence the lack of appointments to set up the business feeder account... It also states on the eligible lenders website that a business account is not necessary. Apologies for my lack of knowledge, although that’s what I thought these forums are for...
I’ll ignore the saltiness and once again thank you for your feedback.

Jeremy535897

amiller83 said:

Well, that’s news to me. Barclays informed me that it is pretty common for a sole trader to use a personal account, plenty of other people appear to be doing the same - hence the lack of appointments to set up the business feeder account... It also states on the eligible lenders website that a business account is not necessary. Apologies for my lack of knowledge, although that’s what I thought these forums are for...
I’ll ignore the saltiness and once again thank you for your feedback.

When you read the terms and conditions of organisations like banks, they will include points that, while they don't normally enforce them, they can use them to deal with customers who are doing something they shouldn't, or are banking large amounts of cash. For small businesses with limited numbers of transactions they aren't interested in doubling up numbers of accounts for about £5 a month. The BBL has shone a light on this particular area, and has allowed banks to do some picking and choosing, when under the BBL terms they could not do so with an existing business account. HSBC decided to use the issue as a way of getting new business, by being one of the few that offered people without business accounts the feeder account arrangements, and were swamped as a result.

tripled

It is common, and although it's technically against terms and conditions for personal accounts, many banks turn a blind eye to it as long as it suits them. However, it's not really relevant to your predicament. If Barclays has decided that they will only process bounce back loans for those with a business account, they are perfectly entitled to do so. There is no legal obligation on them to offer you either the account or the loan, nor are they obligated to take on additional staff to meet the demand for new accounts, so you do not have grounds for a claim.

If you have time on your hands you could put in a formal complaint to Barclays, it doesn't cost you anything and if you're lucky they might make a bit more effort to find you an appointment slot, or bung you a few quid to keep you happy, however on the flip side if you stir the pot there's always the risk they could close your personal account for being in breach of their t&c.

Thrugelmir

amiller83 said:

Well, that’s news to me. Barclays informed me that it is pretty common for a sole trader to use a personal account, plenty of other people appear to be doing the same - hence the lack of appointments to set up the business feeder account... 

Then there's only one person you can blame. Not the banks fault nor their problem. Not possible to pick and chose what you or don't want to play by the rules. As is the case now it comes back to bite you. Customers who've abided will be dealt with first.