Personal Guarantee Advice on Demand for Payment, Director's Personal Guarantee Advice Guidance and Help provided by IBAS since 1992
Directors UK Bank Personal Guarantee Debt Claim Demands and the IBAS Christmas Warning Post
Christmas 2019 is fast approaching and Banks will use their normal 'holiday' strategy on legal claims.
- That means they will be already preparing their Christmas legal claims.
- Many are prepared deliberately to drop through your letterbox just before 'close of business' on Christmas Eve.
- Getting 'advice' for a Director's Personal Guarantee Debt Claim around Christmas and New Year is extremely difficult.
- Banks know that - whilst they have easy access to solicitors at all times their customers will not.
- Between Christmas Eve 2019 and 2nd or 3rd January 2020 is a normal holiday period for most in the UK.
- Therefore, good strategy (although extremely unfair) for banks to issue a claim ready for 'service' on Christmas Eve.
- The 'service' on you will be deliberately timed for maximum effect for the bank's benefit.
- The legal clock starts ticking once a claim is 'served' which puts the customer under extreme 'time' pressure.
Losing 10 days in the Christmas - New Year period doesn't help those with legal claims obtain help.
- Banks know that customers will be forced to react - which means many customers will also attempt a DIY response.
- Banks love DIY responses, as they know they will normally lead to the bank obtaining an 'easy judgement'.
- The customer just doesn't react at all and judgement is obtained by the bank by default.
- DIY responses miss possible defences which are effective legal arguments to avoid 'strike out'.
- We would suggest that anyone with a bank claim 'lurking' against them - obtains help.
- Do not get 'rushed' into answering a bank's legal claim without any help at Christmas.
Drop IBAS an email and we will explain what can be done.
Director's Personal Guarantee Debt Claim advice help, guidance and assistance - If you have been 'served' with a bank demand you will require very specialist advice to assess if the Director’s Personal Guarantees you signed can be contested now.
A personal guarantee is an agreement made between an individual or individuals which means that if they act as a business director they then take a level of responsibility for their company's debts in the event that they cannot be paid back by the business or company itself. If a claim is made under the personal guarantee, the director will be liable to pay the company's or businesses debt and the partner, proprietor or company directors' personal assets may be at risk as they become liable for the relevant business debt that is covered by the guarantee.
Personal Guarantees on Bank Business Debts or business banking debts or disputes for Limited Companies allow the bank to claim a debt is owed personally by the personal guarantor if the business fails or the Limited company cannot pay the debts claimed on the bank's demand. It is not enough for a personal guarantor to resign from the company and even if a company director resigns that may not protect them from a bank claim on their personal guarantee for debts owed by the business whilst they were directors or partners. If you need to have a release/discharge/end/finalize or 'determine' a personal guarantee you will require specific advice to make sure the Personal Guarantee is no longer 'relied upon' by the bank.
IBAS has 27 years of continuous business banking dispute investigations and negotiations experience with all major UK lenders and we provide professional, confidential guidance and direct assistance to directors and proprietors requiring assistance with their business banking disputes.
IBAS was the first in this field and remain the best.
IBAS website was launched in 1998 to help UK businesses with business banking disputes.
(see BBC Testimonial for IBAS in 1999) at:
Your Money Not a moving account - BBC 22/07/99
The Bank’s Final letter for your business banking dispute complaint & business complaints to the Financial Ombudsman Service (FOS)
It is a fact that all banks spend considerable time and effort 'drafting' their Final response letter to the customer on complaints because they know that their Final Response letter is designed to persuade the Financial Ombudsman Service (FOS) to their position. By that time the bank’s customer services/complaints department will have already extracted all your information from you for their benefit by questioning you and then they will have dismissed your complaint/s.
Bank Final response letters are drafted and written by legally trained bank staff who are communicating with the FOS daily and are therefore completely aware of FOS decision making.
The Financial Ombudsman Service staff are aware that bank Final response letters are prepared by legally trained bank staff and the bank’s Final response letter will influence the FOS ‘investigator’.
Bank customers may believe their business banking dispute complaint/s will get a fair hearing by the FOS and from reading the FOS website may also be misled into believing that it is ‘easy’ to make a business banking complaint through the FOS.
However, banks possess very distinct advantages, which include legal knowledge, long experience of ‘complaint casework’ and know what is effective (for the bank). Banks also know how the FOS 'thinks' as they communicate regularly with the FOS by telephone.
The Financial Ombudsman Service do not calculate bank accounts to provide an independent calculation where they are required. The Financial Ombudsman Service will rely on bank methodology and bank calculations when dealing with a business banking account dispute.
The bank's Final letter allows you 6 months to make a complaint to the FOS.
see very poor 2019 - Trust Pilot Reviews for Financial Ombudsman Service
What will the Independent Banking Advisory Service (IBAS) provide you for your business banking dispute complaint which the Financial Ombudsman Service (FOS) will not?
IBAS will carry out fully independent investigations of business bank accounts based on the customers complaint and will provide fully independent calculations with a report which can then be relied upon to evidence incorrect charging, bank errors and overcharging.
Historical banking account errors/bank charging mistakes and bank overcharging claims evidenced by IBAS account investigations and calculations enable effective business banking account complaint progression. IBAS has been calculating business bank account and overcharging complaints since the mid 1990's
IBAS account investigations enhance the customer's complaint with substance to evidence bank charging errors to the customers advantage.
IBAS will investigate business banking disputes which IBAS 'take on' and progress for the customer.
IBAS reports can then be relied upon for any business banking dispute which IBAS has accepted.
IBAS investigate Director’s Bank Personal Guarantee dispute complaints and assess all other security documents held by the bank for lending purposes to establish the facts and historical positions. Specific advice on business banking account/s disputes and further actions required are provided by IBAS once our investigations conclude.
Information from those we have assisted since 1992 show that other ‘advisors’, solicitors & also the FOS carried out very limited or basic ‘checks’ on business banking complaints. Basic ‘checks’ cannot identify customer defences, allow debt reduction or eliminate a debt being claimed.
It’s clear that ‘other advisors’ provide advice and ‘outcomes’ without necessary facts. That disadvantages or destroys the customer’s ‘case’. IBAS has a long established standard practice for investigating bank customer’s business banking account disputes in depth – other ‘advisors’ do not do so.
IBAS business banking account investigations experience, our expertise in analysis of business bank loans, business bank current accounts, business banking contracts, business banking account facilities plus our knowledge of business banking debt recovery strategy - has provided us with expertise in utilizing our specialist banking knowledge.
IBAS specialist banking knowledge is the key to our member's success and the almost miraculous settlements for IBAS members.
IBAS business banking dispute knowledge and negotiating experience provides IBAS members with proven strategy for business banking debt claims and Director's personal guarantee debt claims which can provide defences.
Our specialist business banking, business account investigations of UK business banking account disputes since 1992 provides us with specialist experience and depth of knowledge which cannot be matched by any other organization 'acting' for business banking customers.
There is no other non - profit UK organization with providing individual, independent, confidential, specialist business banking advice and specific assistance to business banking members.
See IBAS Blog and also
further Director's Personal Guarantee information pages below:
Personal Guarantee Demand for Payment
Personal Guarantee or Personal Guarantees and Indemnity
If there is a way to 'get out of' or legally avoid a Director's Personal Guarantee debt claim then IBAS will have a confirmed strategy in place. Our aim is to gather all necessary information to improve your position whilst we gain time for you - which also allows us to then negotiate the debt down or remove it. Once the bank moves onto issuing a legal debt claim on a Director's Personal Guarantee using the courts the time frame is shortened dramatically and the bank will employ solicitors to 'tighten the noose' as they move on to 'strike out' defences to obtain judgement to claim property and assets.
Act now before it is too late for IBAS to help you
you need IBAS to help you because:
We know (from cases we have received) that many cases have been lost due to their 'advisor' not having the knowledge of the lender's debt recovery operation or information which the lender continues to conceal.
Obtaining only bank information which the lender want you to have is not just 'sloppy' it can be disastrous, not for your advisor - but for you.
The 'end result' for those who receive poor or inadequate 'advice' means they make 'proposals to pay' based on incorrect information - by doing so they may then lose all possible defences - which may mean them losing their home.
From information and files received from those we have assisted (i.e. files from other advisors and solicitor's files) it is clear that other ‘advisors’ carry out limited or only basic ‘checks’ on business banking debt claims or demands which will not establish customer defences (or claims) to allow a debt reduction or to eliminate the debt being claimed. Other advisors are still providing advice without first establishing all the facts, which will disadvantage or destroy the customer’s complaint/s.
If your business was forced into Lloyds Bank Business Support Unit, Royal Bank of Scotland/NatWest bank/RBS Global Restructuring Group (GRG) unit or HSBC Specialized Lending Unit - IBAS know how they operated and how false defaults were engineered - lawyers do not have that specific experience or IBAS knowledge from such cases.
It is also now documented that Mandatory referrals and transfers to such units were required by those banks and that any 'breakdown' of the customer relationship (whether engineered by the bank or not) was used to refer businesses to such units - even the questioning of bank charging by the business was enough to 'trigger' the bank moving that business to what are effectively 'debt recovery units' and building up penalty fees and charging rates to drive up the debt then being claimed - so contact IBAS with your case details and let us know whether your company is still trading - or been forced into insolvency by the bank.
Business Support Units, Specialized Lending or Specialist Relationship Managers are all terms used by the banks for those individuals specifically employed by the bank to 'rip off' businesses by forcing or 'triggering defaults' - forcing businesses into insolvency situations, where the bank could then plunder the cash flow and assets and then having brought the business to it's knees 'follow on' to demands and then also enforce on Director's Personal Guarantees.
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 'get out of the personal guarantee' - is it possible to do so? Can you dilute your director’s personal liability under a bank’s director personal guarantee debt demand? Those questions have been asked in cases where IBAS investigate bankers and the bank actions.
IBAS business banking members are guided 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. 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.’
'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
Banks seek security for lending in many ways but the Personal Guarantee 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 - in stating: ʻitʼs only a piece of paperʼ or ʻthe bank will never rely on itʻ or when security on the home is being taken - or, the well used phrase of: ʻdonʼt worry we will never take your home, even if the business failsʼ.
IBAS has found in 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 have a strategy as our aim is to gather information to improve your position whilst we gain time for you so that we can negotiate the debt down or remove it.
IBAS aim to provide good specialist advice and resolution before litigation and if IBAS is involved immediately after demand for payment by a bank, our aim is to gain all information which we know is necessary to assess legal arguments. IBAS lay the 'groundwork' for successful defences of banking claims by first preserving any defences which then exist - and yes, we have assisted in many cases which have been won by our members after litigation in the County Court, High Court and the Court of Appeal.
IBAS experience and personal guarantee advice is extremely important for any business banking customer in dispute with their bank.
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 those values many years ago. IBAS obtained some very high value overcharges and considerable refunds from banks because we knew how to do it - but often those 'overcharges' also concealed the bank's intention for 'plundering' personal assets because Director's Personal Guarantees were being 'called' by their bank for 'payment on demand' of business debts 'secured' by the director's personal guarantee.
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
The case above shows how dangerous Director's Personal Guarantees are for those who sign them.
Communicating with someone who has dealt with a great many cases like yours is crucial - so don't waste any more time putting it off - act now - email IBAS from the link below and tell us about your dispute or your demand.
Director's Personal Guarantee debt claim disputes can be very complex and our experience is that far too many business banking customers wait too long before they obtain specialist help which then creates added pressure on the customer to make proposals to pay
IBAS act quickly to advise and protect you if you are facing liquidation, receivership or being threatened by bank business debt claims and demands or Director's Personal Guarantee Debt Claims or demands from Limited Company debts.
Last modified: 16th November 2019