IBAS - Independent Banking Advisory Service
Directors Personal Guarantee Request copy from Bank?
Do you have a copy of the personal guarantee the bank claim you have signed?
Want help defending directors personal guarantee debt claim dispute with bank?
Is the bank claiming a Limited Company debt and claiming on the Director's Bank Personal Guarantee that you signed?
Whilst the company is in a CVA arrangement, has the bank requested proposals to pay on your directors personal guarantee?
Can you fight back on a Director Bank personal guarantee debt claim?
A copy of the bank's personal guarantee document should have been provided at the time you signed. If you signed in front of a solicitor and they witnessed your signature and also advised you on the signing - they should have provided you with a copy at that time.
Many Director and personal guarantors do not have a copy of the PG document they signed
or just cannot find it.
Should you request a copy of the personal guarantee you signed from the bank?
Are you personally liable to pay the Limited Company debt which is now being claimed?
IBAS investigate Directors Personal Guarantee Disputes and Debt Claims and can help defend banks legal claim on directors personal guarantee debt claim - avoid personal guarantee judgment
Are you sure of the validity of the Debt claimed and the legal enforceability of the Bank Claim?
As TM stated
This is a battle that we have won, which could quite easily have been lost had I not joined IBAS.
I would recommend them to absolutely everybody" - TM Testimonial for IBAS
BBC Testimonial for IBAS at: Your Money Not a moving account
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.
IBAS has investigated a great many director's personal guarantee bank cases since 1992.
Director's Personal Guarantee bank facilities, agreements and debt claims resulting from lending facilities are rarely simple and can be extremely complicated. We have found that quick or easy answers at the enquiry stage are only possible where the case has already been lost or defences compromised.
Signing into a Director's Personal Guarantee and Indemnity is intended to expose the guarantor to a legal claim on their assets by the lender if their Demand for Payment on the borrower is not or cannot be paid.
That is the Lender's intention when seeking a Director's Personal Guarantee with an Indemnity.
Many Guarantors believe that having a co-owner of the family property will then prevent the lender charging against or issuing a possession order or order for sale on their home after judgment.
But, in our experience Lenders obtain a judgment for debt so that they can 'take' any personal assets which are not legally protected.
Therefore, a part owner or co-owner of a property will not prevent any claim (charging order or order for sale) on that property once judgment is obtained in court against the bank customer.
Our experience shows that lenders obtain all property ownership and existing mortgage details immediately their debt recovery commences – they are then able to enforce on judgments once the Judgment for debt has been obtained.
IBAS fully investigate Director's Personal Guarantee Debt Claims and that has been our standard practice since 1992.
There is no other non - profit UK organization providing independent and specialist individual business banking advice and specific assistance to members.
Banks and Bankers do not play fair
IBAS can protect you from the often hostile intentions and actions of your bank
Banks produce documents they will rely on for their legal claim on you - it's vital to know which documents they will hide.
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.
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.
Do you require a release/discharge/end/finalize or 'determination' of a personal guarantee?
If you do need to be certain of your position, you will require specific specialist advice to make sure the Personal Guarantee is no longer 'relied upon' by the bank.
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 don't 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 business questioning bank charging was enough to 'trigger' the bank moving that business to what are effectively 'debt recovery units'.
Then building up penalty fees and charging rates to drive up the debt 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.
'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 Testimonial
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 banking relationship dialogue.
We do not think there is any mystery there
As 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 their own 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.
Once a bank has made a claim on the personal guarantee or issued a demand for payment they will be happy to oblige and provide you with a copy of it because your signed personal guarantee will be an essential part of the bank claim against you.
However, requesting a copy of the signed Personal Guarantee document itself does not help very much and could just waste time without any real benefit to you.
There are other important documents and important questions which are necessary.
If IBAS is dealing with a director's personal guarantee debt claim, we first establish what you are questioning and why you may have any doubts regarding the origin of the bank's claim or the personal guarantee debt claim itself.
Assumptions and theory do not work when a bank debt is claimed from a director's personal guarantee, debt claim/company liquidation or company administration. CVA and Liquidation of Limited companies can present their own difficulties and Company Directors need to be aware of how asset sales and failure to collect business debts can alter their Director's Personal guarantee debt to the bank.
It should be noted that an IVA arrangements will immediately force the bank to remove any overdrafts or loans previously agreed - so advise other than from the IVA or CVA provider themselves is necessary.
There is no mystery for IBAS in such matters and we are not 'learning' on your case.
IBAS 'case work' experience has shown how banks operate and where personal guarantee debt claims can be fought. IBAS specialist knowledge and experience is unique. That's because it has been gathered from IBAS investigations into business banking account disputes and bank mistakes - we use all our knowledge and experience in every 'case'.
A fully prepared defence can be drafted with the correct arguments. IBAS know how best to obtain all information necessary for defence purposes to prevent escalation quickly to a legal debt claim and to avoid costly legal fees.
If you are seeking to 'control' your future but have just received a claim for a banking debt liability from a limited company guarantee or a debt claim demand from a director's personal guarantee - IBAS can help.
IBAS 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 by first preserving defences which 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.
As one of our members Testimonials 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 Testimonial
The following IBAS Testimonial statement has been posted online by one of our members:
"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."
That case illustrates just how cautious a guarantor needs to be and how dangerous Director Personal Guarantees are for those who have signed them, whether for themselves as a sole proprietor or with others as directors or partners providing guarantees for company or limited company debts.
IBAS case experience since 1992 has shown us exactly how bank Debt Recovery Units 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 current cases.
Bank debt recovery officers are highly 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 legal and 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 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.
Bank staff are not employed to advise the customer - they are employed by the bank specifically to protect the bank and get money from the customer.
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.
Immediately, the bank are provided with that the customer is under pressure for payment regardless of any disputes or complaints which may have been previously raised.
That is why the bank seek your asset/income information - as a first priority.
IBAS had obtained in excess of £21 million in refunds, write-offs and write-down of bank debt by 2002 from investigations of UK Business Banking Disputes - then we stopped counting.
BBC Testimonial for IBAS -Your Money Not a moving account
IBAS has featured on BBC TV, BBC TV News, ITV News, Meridian TV and Sky TV News since 1992 and contributed banking editorials and business banking articles for the Sunday Times, Times, Daily Mail, Daily Express, Telegraph and Daily Mirror.
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.
Modified: 10th December 2021