Independent Banking Advisory Service
Established in 1992
Personal Guarantee Advice on Demand for Payment - Director's PG Guidance
Directors Personal Guarantee Debt Claims guidance - 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.
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.
We believe IBAS is the most economical, professional, confidential guidance and direct assistance organisation available for UK Business banking problems and disputes, up to and including litigation. IBAS experience has proved to be the deciding factor in effective and sometimes almost miraculous settlements for business banking customers. What do you require from your advisor? Tell us what you are seeking by emailing us and we will respond to you in a no obligation and confidential 'conversation'.
IBAS has specialist knowledge from IBAS investigations into UK business banking account disputes since 1992 - no other organization has IBAS experience or IBAS knowledge, which provides IBAS with width of knowledge for our investigations (and IBAS use only) in assessing investigation strategy to produce the best results - that provides you with more and better 'options' for your bank personal guarantee debt claim demand.
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 - we know how they operate and how false defaults are 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 and that 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' - which forced 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 enforce on Director's Personal Guarantees to take their homes.
Or telephone (during office hours only) on 01487 843444 for confidential conversation
After 25 years of business banking 'case work' and investigations we know that nobody has a 'formula for guaranteed success' with banks on business bank debt claims. But knowing what can be achieved from the IBAS strategies developed and finely tuned over that period means that IBAS can 'shorten the odds' for you with your claim.
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 is now in it's 26th 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 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 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. 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 already have the strategy for it.
IBAS aim to provide good specialist advice and resolution before litigation if possible but 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 - against existing case law. IBAS lay the 'groundwork' for successful defences or 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.
So, IBAS experience and knowledge will be extremely important in supporting any business banking customer in dispute with their bank. - See information below on case with IBAS member Keith Elliott - where the bank is seeking payment from his personal guarantees:
Lloyds and PwC face £55m court case from motor dealer who says the firms forced it out of business Lloyds Banking Group and accountants PwC face a £55m legal battle with a motor dealership which will allege they colluded to force it out of business.Yorkshire-based Premier Motor Auctions will argue Lloyds used its Business Support Unit as a profit centre to extract money from struggling firms, according to the Sunday Telegraph.Premier, led by chief executive Keith Elliott, went bust following a failed sale of the business in April 2008. The firm will allege it was the victim of a plan to push bank staff to increase profits as the financial crisis hit. - 25th February 2018 - City AM
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 overcharges back from banks because we knew how to do it but the 'numbers' whilst they were considerable, meant very little to the individual because it is each individual's business banking debt that matters and their personal assets which are at risk from the bank's 'plundering'. It's also their Director's Personal Guarantee which is '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
This case showed how bank guarantors should be very cautious and also how dangerous Director's Personal Guarantees are for those who sign them.
IBAS has featured on BBC TV, BBC TV News, ITV, Meridian and Sky News and contributed to many editorials and articles including those for the Sunday Times, Times, Daily Mail, Daily Express and Daily Mirror. - see Business: Your Money Not a moving account - BBC 22/07/99
- see Business: Your Money Not a moving account - BBC 22/07/99
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 account/mortgage account and security disputes and business banking debt disputes. Our bank analysis and investigation of business bank loans, bank accounts, banking contracts, business banking account facilities and banking debt recovery information has been instrumental in our member's success.
Last modified: 6th April 2018