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

[jamesbrown]

Ooooo, "HMRC supporter". I feel suitably chastised. Can we move this train wreck to general?

[northernladuk]

as with PPI i expected lots of people to come online and claim nothing was mis sold - but that doesn't change the fact a lot of people out there feel this way (judging by all the private messages im getting)

Nope. PPI was clearly missold. There is no question. My other half got caught by it. They got a loan and were sold PPI. Even though they had all the details when applying for the loan the criteria they had (other half and ex husband) meant the PPI wouldn't pay out. Clear misselling. They had the information that made them illegible but they were sold it anyway. Slam dunk as many cases were.

100% gaurantee was used to coerce people to borrow. we now have a large accounting body asking the government to write off all bounce back loan (https://www.p2pfinancenews.co.uk/202...ce-back-loans/)

100% gaurantee is nothing to do with the borrower. It was an incentive for the banks to lend. Period. Don't know why you can't get that. People didn't take the loans because they were 100% gauranteed. The only reason you'd take one on that basis is if you fully intend not to pay it back.

possible breach on unfair lending - i.e lender continued to lend money to business who were unable to pay. no check were done. grounds for compensation.

There was always a risk. This was a latch ditch attempt to keep people afloat and the gov would take it on the chin if they didn't. It sounds like you fully benefitted from it by takeing 20k, spunking it up against the wall and walking off without paying it back. What would you have done if you hadn't taken it? You'd have been in a lot worse position I imagine. It has been a lifeline for many businesses.

encouraged further borrowing- again if people feel lenders encouraged them to borrow further, this is grounds for compensation.

Some businesses had absolutely no choice. You have to look beyond your situation and where it was used properly. You could argue BBL wasn't really for us.

im glad these threads are now online so others can see. to those who want to call me "stupid" etc, i am not sure what you gain. however i will be updating the thread once HMRC releases information on how much debt they have written off etc, and then we can see if these loans were mis sold or not.

Which is everyone so far. Again, are you not seeing this. Not one post backs you up. Not one single one. In a situation like that you really need to look at yourself.

It sounds to me like you benefitted well from this, you got 20k, spent it and don't have any liabilities. Why are you carrying on?

[northernladuk]

Ooooo, "HMRC supporter". I feel suitably chastised. Can we move this train wreck to general?

At least you didn't get accused of working for HMRC or being an agent. Sometimes I don't know what I am after being accused of wearing so many hats

Definitely general for this one.

[northernladuk]

Is anyone taking a holiday on the UK Business forums or is that as scarey as Mumsnet?

[zeus tiktak]

millions of businesses are in a very similar position. they don't have any money in the bank, and owe BBL's.
Do you expect these people to pay the BBL from their personal savings when the debt collector comes?

all i'm doing is telling my story. the 100% guarantee was actually misleading. for many businesses it would have been better to go bust and not get the loans. directors could then have claimed benefits.

what issue to you have with this information being in the public domain? knowledge is powers and if someone wants to read this and it helps them then that is a good thing.

[malvolio]

millions of businesses are in a very similar position. they don't have any money in the bank, and owe BBL's.
Do you expect these people to pay the BBL from their personal savings when the debt collector comes?

all i'm doing is telling my story. the 100% guarantee was actually misleading. for many businesses it would have been better to go bust and not get the loans. directors could then have claimed benefits.

what issue to you have with this information being in the public domain? knowledge is powers and if someone wants to read this and it helps them then that is a good thing.

Just a wild thought....

If you "let a company go bust", especially to avoid debts, then HMRC are well within their rights to come after you individually as the responsible director to recover the money. The 100% guarantee puts the money back in the Treasury's reserves, it doesn't necessarily mean that you don't owe anything.

I wouldn't relax just yet if I were you.

[courtg9000]

Is anyone taking a holiday on the UK Business forums or is that as scarey as Mumsnet?

Not a bad forum but more for bricks and mortar businesses. Not as bad as Mumsnet He has been bollocked there too and I have nothing to add there.

He is a prat and I have already said as much here.

[ladymuck]

This has been a right laugh of a thread to catch up on. We haven't had one like this in ages.

Such a shame NF hasn't fixed thread moving yet (or has he?)

[zeus tiktak]

yes a "prat", an "idiot" that is trying to help thousands of business owners with no money and huge BBL liability.

no one let their business go bust, covid did that! 100% guarantee was a blatant lie to some, some people were panicked into taking these. the amount of emails i'm getting with people saying this is amazing, and justifies the existence of this thread.

[northernladuk]

OP, why don't you furnish us with the exact details of your situation. What lead you to take the loan, what you did with it, why did you need to shut the company and default on the loan?

Things are only mis-sold if they were given in a situation they shouldn't have been. Maybe if you tell us why you took it and why you ended up closing the LTD we might understand a little better.