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?
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?
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.
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.
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?
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?
Indeed. OK, thank you.