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Director’s Personal Guarantee complaint through Financial Ombudsman Service.

Independent Banking Advisory Service (IBAS) - IBAS launched in 1992 as a specialist unincorporated business banking membership organization assisting bank customers with UK business banking account loan disputes and business banking debt disputes with their bank. Our analysis and investigation of business bank loans, business bank accounts, business banking contracts, business banking account facilities and business banking debt recovery information has been instrumental in our member's success.

IBAS is now in it's 25th year helping/guiding those with UK Business Banking disputes and Director's Personal Guarantee business debt claims - IBAS is the only UK non profit organization which provides business banking customers with specialist business banking assistance and specialist business banking guidance and also IBAS specialist business banking investigations.

The first question in your mind when you receive a demand on your personal guarantee will probably be is the personal guarantee valid? or maybe your questions is can this personal guarantee be contested in any way - if so how? Banks seek security for lending in many ways but the PG is the easiest and the simplest for a banker to take (and the least resisted by the customer) particularly when bankers have not been truthful and stated: ʻitʼs only a piece of paperʼ or ʻthe bank will never rely on itʻ or when security on the home is being taken - the well used phrase of: ʻdonʼt worry we will never take your home, even if the business failsʼ.

Those are areas in which IBAS has been ʻworkingʼ since 1992. We have found over time through our investigations that what was said before the personal guarantee signing or before other security for borrowings was taken is probably the most contested ʻbanking relationshipʻ dialogue. We do not think there is any mystery to that. Whilst bankers are very well aware of the legality of the signed Personal Guarantee (their banking exams specifically cover all aspects of taking valid security for the bankʼs benefit) and also how the bank will enforce on it later when required - it is often the ʻsellingʼ of the signing of a personal guarantee for a business which has been ʻmiss statedʼ by bankers in their quest to obtain the maximum security for their lending and in meeting loan/account/security targets. IBAS investigation on such matters focus on obtaining all information and evidence to properly investigate not only the circumstances of the lending but also the circumstances around the taking of all security by the bank.

IBAS business banking dispute negotiating experience and proven strategy provides claims and defences for business bank customers. IBAS has excellent banking investigation reputation and has also featured on BBC TV, BBC TV News, ITV, Meridian and Sky News and in Sunday Times, Times, Daily Mail, Daily Express and Daily Mirror editorials.

Director's personal guarantee demand debt claim? Joint & Several Guarantee debt claim? Debt from Director's Guarantee? Seeking advice on director's personal guarantee in UK? Thinking of making a complaint to the Financial Ombudsman Service for a director’s Personal Guarantee debt claim?

Well, unfortunately, the opportunity for making a Director's Personal Guarantee debt claim complaint through the FOS is no longer available because banks have played the 'jurisdiction card' to block such complaints being investigated by the FOS - of course once the bank disputes FOS 'jurisdiction' the FOS immediately refuse to act further on those complaints. We have seen a number of such complaints being 'thrown out' by the FOS and clearly that 'no cost door' has been closed by the banks.

As one of our members stated:

" I discovered IBAS via a Google search for “personal guarantee advice”. Until this point I didn’t know that such an organization existed. At the same time I had also started talking to a number of solicitors about my position. The reason that I put my faith in IBAS was that it was clear they had extensive knowledge about PG’s. It seems to be a very specific area of law and whilst the solicitors were very gung ho it was clear they did not have as much specific expertise as IBAS. Since taking on my case IBAS have provided detailed, accurate and realistic advice. They are comfortable handling the various tactics deployed by the banks and provide strength and support during what can become a very stressful situation. I would probably have caved in or lost had IBAS not been handling my case." - MJ

IBAS response to enquiry after the Financial Ombudsman Service had been used for a Director's Personal Guarantee Debt claim ‘call’ - is shown below:

"You say in your enquiry that: 'the bank have lied blatantly to the court stating that I was an experienced company director and my husband’s also an expert in company matters – but I have only ever run a very small business and my husband is in IT. The Financial Ombudsman Service was only interested in the fact that I had signed a guarantee - so they said I should pay the guarantee - they wouldn't consider anything else I had said.'

If you've read our web site you will be aware that that is what banks do - and the FOS decision is what IBAS would have predicted. That is because from our experiences any ‘investigations’ by the FOS are extremely limited and the FOS actions (or inaction) serve the bank’s purpose well.

Had you come to IBAS some time ago (and before the Financial Ombudsman's' final decision was made) we might have been able to properly argue your case and establish a defence and to argue it correctly but IBAS needed to be involved before matters reaches the stage you have reached now. You are now facing a ‘summary judgment’. Once the court judgment is provided the bank will seek a charge over your property and exert further pressure which may be by an ‘order for sale’ by the bank for payment of the debt then owed to them."

IBAS know what is possible and also know how it needs to be done for the best results to be gained. Equally we know how easy it is made for the banks when individuals do 'DIY defending'. Unfortunately, you have now found to your miss fortune that when you defend against a bank you need much more than a DIY complaint to the FOS and also that banks don't 'fight fair' - IBAS already had that information (in 1992).

IBAS start with that knowledge and work with that knowledge at all times on every case. IBAS was formed to provide business banking customers with our collective experience which has been gathered since 1992 from the many IBAS banking case investigations. Everything we have gained is used in helping IBAS members win or negotiate their cases to a conclusion.

IBAS provides members with very specialist knowledge and experience. Unfortunately, by using the Financial Ombudsman Service and by ‘DIY defending' you have helped the bank to win their case against you. Because of that you have now lost any opportunity to deny or argue against the summary judgment because the Financial Ombudsman Service has already ‘found’ for the bank and that will be used against you.

Inevitably, that means a judgment in the bank’s favour plus all extra costs and interest (and the ‘extras’ alone will cost much more than any IBAS membership would have cost) but most importantly all opportunity has now been lost to negotiate the amount claimed by the bank. Sadly, your actions have left nothing with which to argue or negotiate your position. You are now at the 'mercy' of the bank. As there is nothing left with which we can assist you it also means it is now too late for IBAS to become involved."

IBAS 'case work' experience since 1992 has shown us how banks operate. IBAS has specialist knowledge, gathered from IBAS investigations of business banking account disputes over time and all IBAS knowledge and experience is used on your 'case' - no other organization has either our experience or IBAS knowledge.

Bank debt recovery officers are trained to control conversations with customers once they have them on the phone. Bank debt recovery officer's training and their legal knowledge at debt recovery provides banks with a distinct legal and also psychological advantage. Particularly, when the customer is attempting to 'negotiate' themselves using the telephone. It is not an ordinary conversation and the customer is immediately placed under pressure and at a disadvantage as the bank's debt recovery officer takes control of the conversation to obtain what they want - which is information to use against you. They are not employed to 'advise' you - they are employed by the bank specifically to protect the bank and get your money from you. Customers have little knowledge of a bank's debt recovery strategy or how it operates but Bank debt recovery units are very skilled in defending the bank's position and are trained to use their legal position and knowledge to prevent defences from arising at an early stage in the bank's claim. That is why they seek your asset/income information - as a first priority. Immediately, they are provided with that information the customer is under pressure for payment regardless of any disputes or complaints which you may have previously raised.

IBAS has obtained in excess of £21 million in refunds, write-offs and write-down of bank debt from our investigations of UK Business Banking Disputes (at the time we stopped 'counting' some years ago) and we 'stopped counting' because for any individual it is only their business banking dispute and their business banking problem which matters. That is not too surprising as it's their personal assets which are at risk from the bank's 'plundering' when their business fails and Director's Personal Guarantee is then 'called' for payment by the bank.