buisness O/D

[GlobalC]

Evening all, thought id post this away from diary. I had a buisness that went went out of buisness at the beginning of last year. The company itself is still pending being struck off as Yell had objected last July. Anyway there is a 5k overdraft which is now more like 5.7k with Natpest. Around a year ago i had spoken with them that we had gone out of business ( via phone ) but at the time my buisness manager was only a temporary one. he said that they would phone and arrange a time for a meeting about it. However they never phoned so i did nothing. I now have had a letter saying about the arrears and that i should call them. The company was a Ltd company and there was another director as well as me. Long and the short of it is should i respond now or just wait and see what they come back with next?

[GlobalC]

Re: buisness O/D

Did you have any personal guarantees on the O/D?

I beleive we did have one when it was taken out but i think each year at the reviews it should have been renewed but wasn't. All the paperwork i have now does not mention personnal garantees

[PriorityOne]

Re: buisness O/D

Evening all, thought id post this away from diary. I had a buisness that went went out of buisness at the beginning of last year. The company itself is still pending being struck off as Yell had objected last July. Anyway there is a 5k overdraft which is now more like 5.7k with Natpest. Around a year ago i had spoken with them that we had gone out of business ( via phone ) but at the time my buisness manager was only a temporary one. he said that they would phone and arrange a time for a meeting about it. However they never phoned so i did nothing. I now have had a letter saying about the arrears and that i should call them. The company was a Ltd company and there was another director as well as me. Long and the short of it is should i respond now or just wait and see what they come back with next?

Personally, I would wait and see what happens. Don't call them, whatever you do.... corresponding by 'phone is a definite no-no unless you actually do want to make an appt. to go in and discuss it.

[CleverClogs (RIP)]

Re: buisness O/D

Evening all, thought id post this away from diary. I had a buisness that went went out of buisness at the beginning of last year. The company itself is still pending being struck off as Yell had objected last July. Anyway there is a 5k overdraft which is now more like 5.7k with Natpest. Around a year ago i had spoken with them that we had gone out of business ( via phone ) but at the time my buisness manager was only a temporary one. he said that they would phone and arrange a time for a meeting about it. However they never phoned so i did nothing. I now have had a letter saying about the arrears and that i should call them. The company was a Ltd company and there was another director as well as me. Long and the short of it is should i respond now or just wait and see what they come back with next?

Has NatWorst complied with section 74 (link) of the Consumer Credit Act 1974, or are they still claiming that the Act exempts business overdrafts?

Section 74 (1B) states:

Where an agreement that falls within subsection (1)(b) is an authorised business overdraft agreement the following provisions apply—

(a)section 55B (assessment of creditworthiness);
(b)section 56 (antecedent negotiations);
(c)section 60 (regulations on form and content of agreements);
(d)section 61B (duty to supply copy of overdraft agreement).

That lattermost section, 61B (link), looks rather interesting - especially at paragraph (3):

61B Duty to supply copy of overdraft agreement

(1)Where an authorised business overdraft agreement or an authorised non-business overdraft agreement has been made, a document containing the terms of the agreement must be given to the debtor.

(2)The creditor must provide the document referred to in subsection (1) to the debtor before or at the time the agreement is made unless—

(a)the creditor has provided the debtor with the information referred to in regulation 10(3) of the Consumer Credit (Disclosure of Information) Regulations 2010, in which case it may be provided after the agreement is made,

(b)the creditor has provided the debtor with the information referred to in regulation 10(3)(c), (e), (f), (h) and (k) of those Regulations, in which case it must be provided immediately after the agreement is made, or

(c)the agreement is an agreement of a description referred to in regulation 10(4)(b) of those Regulations, in which case it must be provided immediately after the agreement is made.

(3)If the requirements of this section are not observed, the agreement is enforceable against the debtor on an order of the court only (and for these purposes a retaking of goods or land to which the agreement relates is an enforcement of the agreement).

I suppose they might have complied with the law but, as NatWorst is part of the Rotten Bastard Swindlers group, one might be quite astounded if they had.

[PriorityOne]

Re: buisness O/D

OP doesn't mention having made a CCA request....

[CleverClogs (RIP)]

Re: buisness O/D

OP doesn't mention having made a CCA request....

They don't have to - the bank has to supply the overdraft agreement at the time the overdraft is agreed.

Re-read section 61B (link):

(1) Where an authorised business overdraft agreement or an authorised non-business overdraft agreement has been made, a document containing the terms of the agreement must be given to the debtor.

See?

[PriorityOne]

Re: buisness O/D

Doesn't mean they've done it though.....

[CleverClogs (RIP)]

Re: buisness O/D

I suppose they might have complied with the law but, as NatWorst is part of the Rotten Bastard Swindlers group, one might be quite astounded if they had.

Doesn't mean they've done it though.....

I expect they didn't and, indeed, one might expect that they still don't.

[PriorityOne]

Re: buisness O/D

This is a BUSINESS O/D though. Correct me if I'm wrong but I thought the CONSUMER Credit Act (CCA) diidn't apply to business accounts - and this one was for a limited company.

As far as I'm aware, it doesn't... but something should have been signed. What they have on record though is another matter...

Business accounts are not my area but OP has not (yet) made any formal requests for docs. as far as I can see anyway.

[CleverClogs (RIP)]

Re: buisness O/D

This is a BUSINESS O/D though. Correct me if I'm wrong but I thought the CONSUMER Credit Act (CCA) diidn't apply to business accounts - and this one was for a limited company.

Will these help you to read section 61B of the Consumer Credit Act 1974?

(1) Where an authorised business overdraft agreement or an authorised non-business overdraft agreement has been made, a document containing the terms of the agreement must be given to the debtor.

[PriorityOne]

Re: buisness O/D

It might be more helpful if you post what you know, instead of living up to your name CC....

[CleverClogs (RIP)]

Re: buisness O/D

It might be more helpful if you post what you know, instead of living up to your name CC....

I already had done!

[PriorityOne]

Re: buisness O/D

That looks very painful CC....