Independent Banking Advisory Service
Established in 1992
Personal Guarantee, Personal Guarantees and Demands for Payment
Directors Personal Guarantee Debt Claims - If you have been asked to pay a demand because the bank forced your business to close down or removed the business account lending you will require specialist advice to determine if the Director’s Personal Guarantees you signed before those events can be contested or now used against the bank’s claim on you.
IBAS provides experienced specialist and practical advice to our members on how 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’s actions.
IBAS will explain and identify all the issues for you when we take up any business banking case under membership - but before we can offer membership, we need to understand your case and what has already taken place.
As a non proﬁt organization we cannot help everyone who enquires and we 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. Once we have determined that we can assist with a case we can then offer IBAS membership.
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 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. IBAS investigations centre on ﬁnding the facts with which we can best protect our member’s interest and their homes.
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 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 evidenced in IBAS News Archive.
If you've received a bank's director's personal guarantee debt claim demand IBAS should be your first call. We know that bank debt recovery departments prey on your fears and we all tend to not act logically if we are scared. With a personal issue, we also act even less logically. That means bank recovery unit's 'scare tactics' work very well to obtain what they want - which is a quick payment proposal or offer to pay. But, instead of telephoning the bank you should be seeking experienced help first and on the claim being made - IBAS can help you to 'control' the bank's 'claim' whilst also investigating all the issues.
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.
One of our members wrote: 'I understand that so many cases are lost before they start because under threats from the bank the customer provides an offer of payment - without 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. - DeeJay
The following statement is posted online:"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
"I know that IBAS provided me with the necessary tools to defend against Barclays successfully.” - said DeeJay - Do you want the 'necessary tools' that IBAS provides to challenge a bank's personal guarantee debt claim and demand?
The case above illustrates the extreme caution required by any Guarantor and also how dangerous Director's Personal Guarantees may be later for those who have signed them. It also illustrates how IBAS guides it's members with Director's Personal Guarantee debt claims for a resolution and also how IBAS Strategy has proved it will succeed.
It's impossible for someone facing a Director's personal guarantee debt demand claim to compare their situation with another's. Challenges to Director's Personal Guarantee debt demand claims require banking knowledge and banking experience. IBAS has dealt with PG demands since 1992 and we advise members based on our experience of individual bank debt recovery units attitudes and their bank's practices. IBAS membership provides an opportunity to fully investigate director's personal guarantee demand claims for flaws. IBAS membership provides exceptionally experienced professional help from 'case' investigations on large volumes of business banking cases and director personal guarantee bank debt claims.
The current practice for all banks 'chasing' payment from a directors bank personal guarantee debt demand is for their debt recovery unit to obtain by any means possible a signed asset/expenditure form or personal financial statement. That's the bank's first priority at or after demand on a Director's Personal Guarantee to the bank. Providing that information at that time to the bank will destroy any further attempt to negotiate the debt on the Director's Personal Guarantee claim. Some bank debt recovery officers telephone customer's immediately after demand to gain an immediate payment proposal. If they obtain a proposal of any kind - it will allow the bank to enforce the debt quickly into a full legal claim. Judgment and enforcement of such a debt from a Director's Personal Guarantee debt claim will inevitably mean legal 'pressure' on the family home. In some cases the bank will seek to obtain an 'order for sale' so the bank can sell the property to repay the bank's demand.
Bank debt recovery officers are trained to not only 'control' any conversation with customers once they have them on the phone but by using their bank training and legal knowledge provided for debt recovery means that they have a very distinct legal and psychological advantage. Particularly, when a customer is attempting to 'negotiate' themselves using the telephone. A bank 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. Customers have no knowledge of a bank's debt recovery strategy or how it operates until they are faced with it.
Bank debt recovery units are also very skilled at defending the bank's position and they will mislead or misinform you to do so. They also know how the law is used because they are trained to use their legal position and knowledge to prevent defences from arising at an early stage in the bank's claim.
Bank loans, business loans, overdrafts and mortgages can require directors or partners to provide the bank with personal guarantees or bank guarantees and many director's personal guarantees or partner's personal guarantees are provided to lenders much too easily. Spouses, other relatives, friends and business acquaintances can be 'drawn' into providing personal guarantees to a bank where they have no control over the borrowings. Often, guarantors have little or no input or control with business borrowings or the increased volume of business borrowings on which they have provided guarantees.A hastily provided signature may prove to be a very costly error and a very stressful experience.