Mis sold loan

Davemid

I am looking for some advice regarding what I believe is a missold loan from HSBC, some years ago I took out a business loan with the bank and was told I needed to sign a personal guarentee or they could not authorise the loan.  Which I did relunctanly  but was told the guarentee would only be in place for the duration of the loan.  It now turns out as my company had an outstanding overdraft when the business was liquidated due to Covid I now have has HSBC telling me that I have to pay the outstanding amount.  Can I claim a missold loan??

DullGreyGuy

What does the paperwork you signed say?

Davemid

Hi that's the problem its a standard HSBC personal guarantee form, I wrote to then just after Covid to confirm that any PG had lapsed, no response, then out of the blue some months after the liquidation HSBC produced the PG. 

DullGreyGuy

Davemid said:

Hi that's the problem its a standard HSBC personal guarantee form, I wrote to then just after Covid to confirm that any PG had lapsed, no response, then out of the blue some months after the liquidation HSBC produced the PG. 

Having not seen one... what does it say? It is tied to a single product (ie the loan) or is it a global guarantee so for all lending to the entity? Does it have an expiry date? etc etc

MEM62

Davemid said:

Hi that's the problem its a standard HSBC personal guarantee form, 

Is it referenced to the loan, the overdraft or any/all debts that the company had with the bank?

Davemid said:

I took out a business loan with the bank and was told I needed to sign a personal guarentee or they could not authorise the loan.  Which I did relunctanly  

Not uncommon practice.  If the company was not financially sound enough for the bank to risk lending to it then a personal guarantee is needed, which effectively underwrites the risk.  If was against your better judgement could have refused to give the guarantee.     

Davemid said:

Can I claim a missold loan??

Maybe.  On what basis would your claim be based?  
  

Grumpy_chap

It is usual that this type of personal guarantee references all finance the company has with the lender.
What were the extents of the personal guarantee signed in this case?

Hoenir

In what way was the loan mis-sold. Banks don't sell finance. It's applied for and the terms on which it's offered are documented.  The guarantee you signed would have been totally explicit. As unregulated lending it would have been presumed that you either understood the document or sought professional advice before doing so.