Independent Banking Advisory Service
Established in 1992
Personal Guarantee Advice on Demand for Payment - Director's PG Help and Advice
Directors Personal Guarantee Debt Claims - If you have been 'served' with a bank demand because the bank forced your business to close down or removed the business account lending you may require very specialist advice to ascertain if the Director’s Personal Guarantees you signed before those events can be contested now or whether you may use that 'situation' against the bank’s claim on you.
IBAS provides experienced specialist and practical advice to IBAS members on how best to deal with and control the bank’s ‘collection’ activities after demand of the debt has been made on a Director’s Personal Guarantee. What can you do and how best to do it? Can you dilute your director’s personal liability under a bank’s director personal guarantee debt demand? Those questions and many others have been asked in cases where IBAS investigate bankers and the bank actions.
IBAS will explain and identify all the issues for you when we accept a business banking case under membership - but before we offer membership, we need to understand your case and what has already taken place.
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.
IBAS business banking members are advised on all matters which may be raised in the course of their membership such as: Bankruptcy, Codes of Conduct issues, Company borrowings - which are now threatening the business owner’s home, Bank enforcing bank demands, Joint and Several Liability debts and Guarantees - how will that alter individual claims, penalty or overcharged interest, Charging Orders, Orders for Sale, Payment obtained from property equity, Full & Final settlements, phased payments and many others. It is a normality that many of our members will have homes on which the bank can ‘see’ available equity - which the bank will know they can leverage by their actions to obtain payment of their debt claim/s.
How can banks and lenders 'see' your available equity? - Bank Debt Recovery officers search Land Registry regularly for the names they have issued demand upon and they glean value and current mortgage information from the current mortgage provider - all quite legally and without you ever knowing.
IBAS investigations focus on ﬁnding the facts with which we can best protect our member’s interest and their homes.
Company Borrowings - Bank threaten business owner's home after Bank's PG Debt Claim issued
Mr H signed a Personal Guarantee with his Bank to cover the borrowings of his company. When the company failed and the Bank aggressively demanded full payment of more than £100,000 Mr H was advised (by other advisors) to ‘offer payment’ but that would have placed his home at extreme risk from legal action, as the bank would seize that opportunity to apply for judgment and immediately apply for a charging order on his home. IBAS investigated the PG claim and were extremely unsatisfied with the ‘paperwork’ which the bank had provided. We considered his Personal Guarantee was not legally reliable for the bank’s alleged claim. After a good deal of written ‘debate’ the bank then agreed and accepted that IBAS view was correct and also agreed the Bank would not pursue their claim any further, or at all. Mr H was absolutely delighted and wrote: ‘We would highly recommend your services to anyone placed in the same position that we found ourselves in.’
Many IBAS members have found their initial email to IBAS turned out to be worth many thousands of £'s to them - as well as reducing a great deal of personal stress - whilst for others IBAS then became part of rebuilding their whole life. The value of IBAS is what we can do with information which others may just discard because they are unaware of it's true value.
'I found IBAS to be Impressive & professional with no nonsense. I followed IBAS strategy totally and the result was spectacular. Thanks for putting my life back on track and saving me a bucket load of money - I cannot thank you enough. I would now start with IBAS and ignore all the others who are 'selling' an imitation of these guys but without IBAS knowledge! - AT November 2016
The ﬁrst question in your mind when you receive a demand for your personal guarantee will be is this personal guarantee valid? or 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 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. 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 focus on how the bank will enforce on it later when required. But, 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 or 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. If there is a way to 'get out of' or avoid a PG debt claim then IBAS will already have the strategy for it.
IBAS had obtained in excess of £21 million in refunds, write-offs and write-down of bank debt from our investigations of UK Business Banking Disputes and Director's Personal Guarantee debt claims - we stopped counting - many years ago.
IBAS obtained overcharges back from banks because we knew how to do it. We realized that the 'numbers' whilst they were considerable, meant very little to the individual as it is each individual's business banking debt that really matters - because it's their personal assets at risk from the bank's 'plundering'. It's also their Director's Personal Guarantee that is 'called' by their bank for 'payment on demand' of business debts secured by the director's personal guarantee.
As a non proﬁt organization we cannot help everyone who enquires with business banking dispute issues and we also need to select cases which most require our specialist assistance. Often, a number of emails will be necessary for us to understand the speciﬁcs and what is being claimed. Only after we have determined the major factors involved and whether your case is suitable for IBAS and also whether membership is available - do we then offer membership.
Testimonial: " Just a quick note to thank you for all your help and guidance with my DGT issues over the past two years. Without your calm, concise advice, I think I would have gone mad! I wouldn't hesitate to recommend your services to anyone with a Directors GT problem. Very best regards - NB
If you've received a bank's debt claim demand for your director's personal guarantee IBAS needs to be your first call. That's because we know that bank debt recovery departments prey on your fears and we all tend to not act logically when we are scared. When it's also involving a personal issue, we all tend to act even less logically. That means bank recovery unit's 'scare tactics' work very well (for the bank) - getting what they want - and what they want is quick payment proposals or offers to pay in order to 'protect yourself quickly' - when instead (and logically) you should be seeking experienced help first about the position and the claim being made before contacting the bank - IBAS can help you 'control' the bank's 'claim' whilst we are also investigating the issues.
Testimonial: "Thanks to the team at IBAS. God only knows where I would be today, had I not had the much needed help to take on the wrath of the monster known as "Nat West". Once again, thanks for your assistance, not only this time but also a few years ago when you saved my 'bacon' then - as well. You couldn't put a price on IBAS's true value". - RS
Testimonial: I understand that so many cases are lost before they start because under threats from the bank the customer provides an offer of payment - ithout understanding there may be a defence to the bank's claim. Having been induced to make that offer, the bank then goes for the jugular. Apparently I am one of a very small band of successful litigants, which I wouldn’t have been without IBAS behind me. - DeeJay
This IBAS testimonial is posted online: “I know that IBAS provided me with the necessary tools to defend against Barclays successfully.” - DeeJay
"The fact that IBAS have the knowledge and provide assistance in formulating the strategy, which was provided to me under membership and which provided the necessary case law ammunition and support (letters continually making the correct points) to prevent the bank gaining the upper hand (preventing me making offers which I wanted to make, just to get this case against me closed, and which would have destroyed any defence) - that strength of position then also enabled me to 'face off' the bank's threat (although the bank/solicitors knew their claim was flawed) and this strength of resistance then forced them to discontinue their action - this is all a matter of fact and something which IBAS should be very pleased about." Source
This case showed how bank guarantors need to be cautious and just how dangerous Director's Personal Guarantees are for those who sign them.
Please Note: Bank debt recovery officers are trained to control conversations with customers once they have them on the phone.