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JGM, Solicitor
Category: Law
Satisfied Customers: 12083
Experience:  30 years as a practising solicitor.
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I've had my business banking with the Clydesdale ,

Customer Question

I've had my business banking with the Clydesdale , i owed them around £600k, In 2012 they changed their view on the UK property market and demanded all the money be repaid, at which point my property portfolio was in negative equity,in January 2013 they applied a credit write off to my account for £200k, they have not applied any interest to the account since the repayment demand, i have since paid some and got the balance on my statement down to £331k and have now agreed funding with another lender to pay this off, but the Clydesdale have now said I owe the original balance of £547k plus all interest due to them.
Is this legal as my statements have shown the lower amount two years now and no interest has been applied to the account, and they have added some other fee's and taken off the money I paid in to it in this time, which shows the account has still been active
many thanks, ***** ***** thoughts on a way forward as I can not raise the larger amount ??
Submitted: 3 years ago.
Category: Law
Expert:  JGM replied 3 years ago.
Thank you question.
What does the loan documentation say about this? Most banking contracts have a clause saying that if the bank chooses to make a concession on interest or any other matter concerning the borrowing, that can't be relied on by the borrower and that any amount due can be certified correct at the hand of the bank.
Typically if a repayment demand is served they will sometimes freeze the interest but that doesn't mean it's not entitled to accrue the interest.
If there is any correspondence on this please let me know what it says.
Happy to discuss further.