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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a Personal Guarantee outstanding with RBS. They only

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I have a Personal Guarantee outstanding with RBS. They only sent me a statement upon my request, showing I had accrued over £4000 in interest.
I have made offers to clear the debt, albeit less than the outstanding balance, but they do not wish to enter in to dialogue. Payment in full, nothing else.
Did RBS have a Duty of Care to inform me of the level of interest they were charging, and would I have any grounds foe seeking a reduction in Charges, please?
Alex Watts : Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Did the original loan set out the interest and charges please?
Customer:

I was the Director of a Company and gave The Personal Guarantee against an Overdraft Facility. The Company went in to Administration and I was notified that RBS would be calling in the Guarantee. I then heard nothing for 2 years. I spoke to the Administrator as I did not know what, if anything, had been recovered to pay the liability to RBS.

Alex Watts : Did you sign the original overdraft?
Customer:

Yes, as FD, I signed the Documents with my Relationship Manager. My Business Partner at the time, split the liability, but when he left, his proportion was assigned to me. I was not notified of the interest rate charged, nor was I supplied with a statement of account until I requested one, in May 2014. The Company went in to Administration in August 2010.

Customer:

There was a gap of nearly 3 years, in fact, before RBS contacted me again regarding any payment against this liability. The PG was for £50,000. They have a Charge over my House. I am looking to relocate and obviously am unable to do so with this in place.

Customer:

The interest charges to date are over £6000.

Alex Watts : Indeed.
Alex Watts : Its bad news I am afraid.
Alex Watts : Clearly you were aware of the overdraft and indeed the terms of the agreement at the time.
Alex Watts : If this agreement allowed them to recover interest and charges then as guarantor you are liable.
Alex Watts : This is a matter of you providing a guarantee to the company obligations
Alex Watts : So sadly they don't need to offer a reduction and they can charge interest and fees.
Alex Watts : You could challenge those fees in court and they have to be reasonable.
Alex Watts : But they don't have to reduce them.
Alex Watts : I am sorry if this this not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.
Alex Watts : Can I clarify anything for you about this today please?
Customer:

I appreciate that I am liable, my argument is that RBS did not inform me of the level of charges they were making. They didn't even send a statement for over 3 years. Is there no obligation upon Banks to inform their (former) customers of the charges they are making?

Alex Watts : None unless it is in the agreement or guarantee.
Alex Watts : In consumer contracts yes, but not Commercial.
Alex Watts : I am sorry
Alex Watts : Does this clarify the position for you?
Customer:

Indeed. OK, thank you.

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