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Closing company down with bounce back loan (possible a mis selling scandal)

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    #11
    Originally posted by zeus tiktak View Post
    ok, ltd company has been closed and bbl written off. this is not advice, but this is what i did:

    1. ensure business bank account has no money
    2.
    8. wait a few weeks, westcot no londer chase and close file. lender will claim on gov guarantee.

    my personal opinion is that the BB:L scheme is the biggest ever mis selling scandal. people being chased should keep all communications and make a note of the emotion distress this is causing once firms start challenging lenders and hmrc.

    As i said this is not meant to be advice, but just a journey i've been on.
    O M G ....

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      #12
      Originally posted by zeus tiktak View Post
      In my case, it was the customer service staff at the lender who sold it as 100% guaranteed and gov backed, without mentioning anything about debt collectors. you cant expect a person to read pages and pages of fine print which, hence i felt it was mis sold.

      when faced with the debt collectors, i simply stated this along with the fact the company has no money. they accepted this, and then went back to the lender who claimed off the government. anyone else facing similar issues, please note these steps are all necessarily before the lender can make the claim with the gov.

      none of us know if the government will simply write all these loans off hence effectively making them a grant. or if they challenge some, they face the proscpect of them being potentially chased by companies for mis selling them.

      millions of people took out these loans, so i hope my experience helps someone out there.
      Yes it was Govt. backed but it was still a loan. You were still expected to pay it back. Thats why it was called a loan. If you don't repay loans then the debt collectors get called. Just as they would if you defaulted on your mortgage or a personal loan. Unless you have documentation that shows that it was pitched to you as a Grant requiring no repayment you weren't mis-sold anything.

      The Govt. backing was for the lenders not you. It was to free up capital in the market by giving guarantees to lenders in what was essentially a high risk lending scheme to support businesses who needed help to stay in business until they were able to re-open and trade again and repay the loans.

      If you were genuinely unable to pay the loan back as your company had ceased trading as a result of Covid then you are in the clear. If you took steps to remove money from the company accounts in order to appear insolvent, before closing it without replaying creditors then you committed fraud. You'll probably get away with it, but then again you may not.

      Pleading in court that you thought it was a Grant when every bit of paperwork you have refers to loans and loan agreements isn't going to work.
      "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

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        #13
        Originally posted by NowPermOutsideUK View Post
        He’s done a runner and posted the steps for others to follow. If the company is really insolvent there is not much hmrc can do
        Oh, but there is indeed.

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          #14
          To be fair, this is the first time I've even seen the word grant applied to the bounceback loans. IMO it's been very clear from day one and as mentioned, it's in the name. It was all over the guidance and paperwork I had to sign. It was discussed endlessly on here and not one single person came to the same conclusion as the OP.

          you cant expect a person to read pages and pages of fine print which, hence i felt it was mis sold.
          Yes you can. You are taking a £20k loan out. A little bit of diligence is in order... and it would have only needed a bit of diligence as even the bigger print was clear. In all the people we've had on here YOU are the only person thats ****ed this up.

          Just a typical case of one person hasn't done their homework, made a boo boo and is now blaming everyone else but themselves.
          Last edited by northernladuk; 16 July 2021, 17:45.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

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            #15
            when PPI was first challenged , everyone said lenders would win. In the end, judges found that PPI was a mis selling scandal.

            Until the supreme courts has the opportunity to judge this your view is just as valid as mine. others with BBL can decide for themselves. My journey has proven it can be written off, following the correct legal process the government has put in place.

            what do you call a loan, 100% backed by gov, sold by lenders as 100% no need to pay back. i think thats a loan still. however if your company has no money to pay it back, it makes no difference what you call it.

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              #16
              I wonder how many people it would take to point the obvious out the the OP before they realise the problem actually lies with them....
              'CUK forum personality of 2011 - Winner - Yes really!!!!

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                #17
                I followed the steps set out by the government and got the loan written off. the lender followed their standard process, and at the end of it, claimed off the government. so the reasons used were accepted by lender, debt collector and HMRC. I raised this thread to highlight to others that this is possible - their is no law breaking here.

                millions of companies get dissolved every year, and never as any bought back to the companies house registrar. I suspect all these BBL will be written off before anyone actually needs to make a mis selling claim. we will have to wait and see.

                Comment


                  #18
                  Originally posted by zeus tiktak View Post
                  In my case, it was the customer service staff at the lender who sold it as 100% guaranteed and gov backed, without mentioning anything about debt collectors. you cant expect a person to read pages and pages of fine print which, hence i felt it was mis sold.

                  when faced with the debt collectors, i simply stated this along with the fact the company has no money. they accepted this, and then went back to the lender who claimed off the government. anyone else facing similar issues, please note these steps are all necessarily before the lender can make the claim with the gov.

                  none of us know if the government will simply write all these loans off hence effectively making them a grant. or if they challenge some, they face the proscpect of them being potentially chased by companies for mis selling them.

                  millions of people took out these loans, so i hope my experience helps someone out there.
                  You are comparing a government concession to support businesses affected by coronavirus in the form of a loan which was hardly marketed(yes, it was on the telly and in the papers, 2nd line PR, not marketing) at all let alone in a way that PPI was with a product that was blatantly missold and mismarketed and rigged not to pay out except in a minority of circumstances.

                  1 of two things have happened, you took out the loan and deliberately bled the company dry to make a point and attempt to get away with the loot in the form of government cash and you are now in the danger zone. Or, second despite your bounce back loan and management skill or lack of your company has gone under as a result of coronavirus. The second is a sad fact that quite a few businesses either have faced or will face and is nothing to gloat about. The first is absolute mick take, there is no commercial skill here. In fact it is pretty shocking IMHO. There have been lots of BBL frauds and option 1 is one to add to that list. If you are guilty of the 1st option I hope they catch up with you on criminal grounds.

                  The spotty customer service boy or girl at your lender did nothing wrong they went through a product with you. They will have gone through their SOP in regard to the loan in terms of std disclaimers. As for not mentioning debt collectors. I do not explicitly mention to my clients that I will send debt collectors round if they don't pay their bills. Its all over any financial risk product - loan/mortgage. Your home may be at risk..... What did you expect them to do if you didn't pay? Send the tooth fairy and that posh bird from Homes Under The Hammer?
                  Former IPSE member
                  My Website

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                    #19
                    we have some smart, yet naïve people on here, if they believe HMRC actually does anything to anyone who has dissolved a company! HMRC use fear to make people comply, but reality they have very little resource.

                    If you have a bounce back loan and no money in the account, just file a DS01 and challenge the lender, debt collector and HMRC to claim on the 100% gaurantee. My case has proven if you keep on challenging them, they will eventually claim on this guarantee. not sure why so many people on this forum are against business owners forcing lenders to claim on this - this is a official process.

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                      #20
                      I will tell you why I do not believe your story - The BBL is only start being due for repayment so there is no reason why you would have disolved the company before repayment was due and the process for striking off a LTD takes months

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