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Jamie-Law
Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 4640
Experience:  Solicitor
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I have been in dispute with my bank over a business loan

Customer Question

I have been in dispute with my bank over a business loan guarantee and would like some adviceRegards ***** *****
Submitted: 1 month ago.
Category: Law
Expert:  Jamie-Law replied 1 month ago.

Hello Robert my name is ***** ***** I will help you with this.

What is it you would like to know please?

Jamie-Law and other Law Specialists are ready to help you
Customer: replied 1 month ago.
As I said in my first email I'm in dispute with my bank about a bank loan guarantee I would like to find out if there is any solicitors that I could speak to locally who has experience in this fieldRegards *****
Expert:  Jamie-Law replied 1 month ago.

Do you have a number we can chat on?

Customer: replied 1 month ago.
Hi my phone number is ***** 430015Regards *****
Expert:  Jamie-Law replied 1 month ago.

Generally what is the issue with the PG you have?

Customer: replied 1 month ago.
My business had an overdraft and in 2003 I was asked to sign a personal guarantee for my overdraft facility which was £110,000 I was told at that time that amount would be guaranteed until I did not require it but in 2011 the bank informed me that the overdraft facility was being reduced to £80,000 I objected to that but was told that it was bank policy then in 2012 the bank informed me that the overdraft facility was being reduced to £60,000 again l objected and told them that it was seriously affecting the size of contracts l could undertake,then in 2013 the bank informed me that the overdraft facility was being transferred into a 15yr term loan again saying it was bank policy then in 2014 I was diagnosed with advanced prostate cancer and had to have chemotherapy and radiotherapy I tried to work through this but it became impossible.
Expert:  Jamie-Law replied 1 month ago.

Ok..... Then what happened?

Customer: replied 1 month ago.
I work to finish the contracts I had started and I did not start any new work. I continued to pay the loan after selling what assets the business and placing in the business account but when the money ran out the bank said I was personally liable. If they had left my overdraft facility as it was I would have been able to keep my Forman to do the building site supervision while I was having my treatments Hope this make senseRegards *****
Expert:  Jamie-Law replied 1 month ago.

Ok - so you cant pay the excess overdraft back or the overdraft generally itself?

Customer: replied 1 month ago.
No I only have the 15yr business loan outstanding which is appropriately £39,000
Expert:  Jamie-Law replied 1 month ago.

Ok. I am not sure what your question is?

Are you asking if you are liable for the loan?

Customer: replied 1 month ago.
Customer: replied 1 month ago.
As the overdraft balance in 2013 was transferred into the business loan
Expert:  Jamie-Law replied 1 month ago.

ok. Does the terms of the guarantee say it is an all money charge?

Customer: replied 1 month ago.
it say a) by giving the security I may have to pay the bank instead of the borrower or lose assets charge if the borrower does not repay the borrower obligations
a)the security covers all the borrowers obligations to the bank of whatever nature and whether arising now or in the future subject always to an agreed limitation on an amount recoverable under the security c) where the security comprises a guarantee,unless otherwise agreed,it will be supported by all security held by the bank for my liabilities to the bank .
At the time I took out the loan I told the bank I was not prepared to put my home as security and made that very clear
Regards
Robert
Expert:  Jamie-Law replied 1 month ago.

Then its bad news I am afraid. They may be able to convert it under the terms of the borrowing between the bank and the original borrow (you or the company).

The PG says they have an all monies charge. So if there is a dispute between you and the bank that is governed by one set of terms under a contract for the loan. The PG is separate.

So sadly you are liable under the PG no matter what they do with the original loan.

I am sorry if this is not the answer you want, nor the one I want to give you, but i have a duty to be honest.

Can I clarify anything for you about this today please?

Customer: replied 1 month ago.
It says it subject always to any agreed limitation on an amount recoverable under the security does that mean that the amount owed is negotiable
Expert:  Jamie-Law replied 1 month ago.

yes indeed. Does that clairfy?

Customer: replied 1 month ago.
Hi Jamie
Thanks for all your advice and being so quick with your response to my questions,I will now try to negotiate a settlement I can afford hopefully not to muchAgain many thanks *****
Expert:  Jamie-Law replied 1 month ago.

Good luck Robert.....

Customer: replied 1 month ago.
Thanks Jamie I probably need itMany thanks again
Robert
Expert:  Jamie-Law replied 1 month ago.

all the best.