Major Problems - what are the chances?

InDebt2007

Hey everyone,

A while ago, I posted a thread on here regarding bank charges and an unauthorised overdraft my Business Partner had gone into.

I thought things were under control, but they really weren't.

I was putting a little money in the Business account every month to get the balance down, on the understanding my Business Partner was doing the same.

Unfortunately, he wasn't and money got tighter and tighter so I had to stop putting money in and then I lost my job.

This has now reached a head and I have had a letter from a Debt Management Recovery Agency acting on behalf of the said Bank.

They have added £25 on the outstanding balance and the letter details that the Bank will not respond to any further communications from me. The balance now stands at around £1186

I did get a new job, but I can't help but feel that if I was to pay this back in full (I could quite happilly afford to, I have enough in savings) that I will not see the money again despite most of it being bank charges. I also can't help feeling that my Business Partner should put something into this, but I know he won't.

I wrote a draft of a letter saying that I will not be prepared to pay the debt, or indeed any money towards it and will be sending the Debt Recovery Agency and Barclays to court but a little voice in my head says that this may not work. I have yet to send off the said letter.

Can anyone advise what I should do next?

Thanks in Advance.

Billy_two_speakers

InDebt2007 wrote: »

Hey everyone,

A while ago, I posted a thread on here regarding bank charges and an unauthorised overdraft my Business Partner had gone into.

I thought things were under control, but they really weren't.

I was putting a little money in the Business account every month to get the balance down, on the understanding my Business Partner was doing the same.

Unfortunately, he wasn't and money got tighter and tighter so I had to stop putting money in and then I lost my job.

This has now reached a head and I have had a letter from a Debt Management Recovery Agency acting on behalf of the said Bank.

They have added £25 on the outstanding balance and the letter details that the Bank will not respond to any further communications from me. The balance now stands at around £1186

I did get a new job, but I can't help but feel that if I was to pay this back in full (I could quite happilly afford to, I have enough in savings) that I will not see the money again despite most of it being bank charges. I also can't help feeling that my Business Partner should put something into this, but I know he won't.

I wrote a draft of a letter saying that I will not be prepared to pay the debt, or indeed any money towards it and will be sending the Debt Recovery Agency and Barclays to court but a little voice in my head says that this may not work. I have yet to send off the said letter.

Can anyone advise what I should do next?

Thanks in Advance.

Get your Business Partner to cough up all the money he owes the business, and even if he does not bring the business to an end you seem to only owe at present £1186 but if he has money problems its hard to know how much you could end up owing ?

InDebt2007

Thanks for your reply!

I haven't been able to get ahold of him but I have his address so perhaps I should drop in on him with the letter and tell him what he is going to do about it.

He stupidly started renting a house, despite all of his debts, despite having a perfectly good home to live in with his parents - some 2 miles away or so.

I am unaware of any other correspondence from the Debt Recovery Agency or Barclays regarding this but as much as I would like to forget about this, I know I have to do something about it.

Is there any way I can get the Bank to go back on this drastic action, or will I need to approach the courts/legal system/FSA about this next?

Thanks in advance.

tyllwyd

I don't quite understand why you are proposing to write to the bank to say that you are not going to pay - isn't your argument with your former business partner? If it was a joint account, aren't you liable for the debt?

Or is it that you don't wish to pay because it includes bank charges?

klane

I'm no expert, but it might be worth callnig the bank to tell them the account is in dispute with your business partner and ask them to freeze it & not add further charges. It can't hurt you explaining that you have paid your share in each time, but they haven't, and the bank need to go after them, not you. They might not, as if it is a joint account, you are arguably still liable, but at least you're in communication with them. That'll stop your business partner being able to run up the debt anymore - and yes, I'd go round with the letter and confront them over it, and try to get something worked out. This is what I would probably do... hopefully some with more knowledge can advise you better.

InDebt2007

Hey everyone,

Thank you very much for your replies.

The dispute is with my business partner mainly, he was the one that ran up the debts - I didn't touch the account, only to put money in it.

However, some of the debt is from bank charges. I can't recall how much now - but my business partner originally made the account £300 overdrawn by spending and spending on it and then despite this, writing more cheques out which led to the massive overdraft.

I ended up cancelling the cheque book myself so he couldn't use it, saying it had been lost/stolen.

The bank of course, were quite happy to allow the account to go overdrawn without advising me so I was left in the dark.

So my beef is with the Bank as well as my business partner.

I should hopefully see him this weekend.

Thanks again for your replies.

InDebt2007

Unfortunately it gets worse...much worse.

I received a letter, on the 30th of April 2008 saying that full payment of £1186 was to be made by then. I could not get hold of my business partner at all, yet I seem to be getting all the paperwork, not him.

Apparently, all future communication and payments must be with Debt Managers Ltd.

I am reaching the end of my tether here, I feel suffocated, claustrophobic and just want this mess that was not caused by myself but my business partner to go away.

What is is the likelihood of this issue getting further escalated if I choose to ignore this? I will quite happilly go to court on my behalf to put right what is wrong, but how much is this likely to happen?

Or am I more likely to find them slap interest on it?

Are the 'immediate payment required' requests just empty threats? Perhaps I should ring them up and explain the situation. Hopefully they can understand. But I don't think they will understand.

Would ringing them up be the first positive step to make...or would I then be claiming sole responsibility if I ring them regarding this?

Finally well, I can fix this mess straight away by transferring money from one of my savings accounts. But I want those bank charges back..could I claim them after this mess or has this reached such a step now that the charges cannot be claimed back?

All help would be most appreciated. I haven't felt so angry or bitter in my whole life as I do now.

Thanks.

tyllwyd

I think if you are going to fight this you need some proper legal advice.

Have you got all the paperwork from when you originally opened the account? If you and your partner are jointly liable, then my understanding is that the bank is fully entitled to ask you to repay any debt, whether or not it was created by you.

About the bank charges - you might get more help on the bank charges board, but I thought the situation is not resolved yet, so as it stands the claims are still on hold. But is this a business account or a personal account - it might be that this makes a difference.

From what you have said, I can't quite honestly see what your case would be against the bank if you went to court. It seems to have been your business partner that has landed you in it. But if you are easy to contact and have the money to pay, from what I've seen here I don't think the debt collection companies are going to go away just because you ask them to.

poppyoscar_3

I actually think to save yourself a lot of stress, and potentially more money, I would put this down to experience, cut your losses and pay up (seething, admittedly).

I think if your name is on the account you are liable too and this doesn't look like it's going to go away.

I don't know about reclaiming bank charges, but as far as getting money back from your business partner, would the small claims court be an option?

Good luck,

PO xx

wymondham

isnt this the way business works - joint benefits, joint liability, joint losses etc... you'll probably have to pay the bank then chase your partner for it ... good luck though!!

InDebt2007

Thank you for all your replies.

Possibly the best course of action will be to pay it all up and then see if I can clean him out in court.

As tempted as I am to beat the absolute **** out of him... or vandalise the house he rents, well, a criminal record isn't worth that trouble.

I do try to avoid confrontation - I know I will be jointly responsible for his actions as it is my name on the form and I probably won't get any of the money he spent back, even if I send him to court but at least I can, at a later date, claim the bank charges back.

I'm going to ring Debt Managers Ltd. on Monday (if they're open) or Tuesday and ask if my business partner has been in touch and what address they have on file.

I will tell them I am in a dispute with him and get the ball rolling to transfer the money and then make steps to send him to the claims court.

This is probably the best course of action. I may even be able to get compensation for 'stress' from the bloke as well. It's worth a shot.

Does anyone think I should try other steps out first?

Thanks again.