Messed up big time with BBL

[Nowornever01]

Hello, I'll try and bullet point what has happened.

* BBL in August 2020
* 6 month payment free extension given in August 2021 (first payment due end of Feb)
* Company accounts delayed, compulsory strike off notice provided last November, strike of notice suspended by my accountant

* The strike of notice despite being suspended triggered an alert to HSBC in January, they sent out a letter advising that as my company was due to be dissolved they would wound up the loan. Just found out today that they were doing this when I rang to apply for Pay as you grow. They advised they sent out two letters, I pay for a remote office service that scans in all received letters and we have not received any letters, I look at the communication on the HSBC kinetic app and there is no letters showing just letter showing generic changes to T&C's.

* We've missed the deadline which was 6 days ago to contest this, now they are going to take it further. On speaking to HSBC they were very understanding and submitted an internal complaint but this takes 4-6 weeks, the entire loan is due by the first week of March before being sent to debt collectors.

I feel quite lost at the moment and don't know what to do, most likely it will go to debt collectors.

 

[ChrisCallaghan]

Is your company still currently trading? What is it that your company does?

(might be worth re-posting this in the Insolvency forum)

 

[Nowornever01]

Is your company still currently trading? What is it that your company does?

(might be worth re-posting this in the Insolvency forum)

Yes still trading.

SAAS company.

 

[Lisa Thomas]

What are you hoping to achieve - are you wanting to continue the business, or call it a day?

 

[UK Contractor Accountant]

Refer to Financial Ombudsman or engage Back British Business to fight your cases on challenging your BBL and engaging with the Bank.

Challenge Your Bounce Back Loan - Back British Business

Thousands of people like you are struggling to pay off their Bounce Back Loan due to government restrictions frustrating their efforts. We can act on your behalf to improve the conditions of your loan or even write off the debt.

www.backbritishbusiness.com

once the BBL debt is disputed the Banks can't enforce with debt collectors etc - its regarded as form of harassment.

 

[Nowornever01]

What are you hoping to achieve - are you wanting to continue the business, or call it a day?

100% continue with the business.

Really we just need the loan to carry on as normal through HSBC but I'm not seeing that happening its most likely going to go to a debt collector as we missed the deadline.

The only positive I can think is that if it goes to a debt collector the payment plan would probably be stretched out over a longer period. But that's me clutching at straws.

 

[Nowornever01]

Refer to Financial Ombudsman or engage Back British Business to fight your cases on challenging your BBL and engaging with the Bank.

Challenge Your Bounce Back Loan - Back British Business

Thousands of people like you are struggling to pay off their Bounce Back Loan due to government restrictions frustrating their efforts. We can act on your behalf to improve the conditions of your loan or even write off the debt.

www.backbritishbusiness.com

once the BBL debt is disputed the Banks can't enforce with debt collectors etc - its regarded as form of harassment.

Thanks for this I'll have look.

 

[japancool]

Hmm. Curious as to what BBB's track record is. The website implies it's some kind of official service, but it's just a private firm of solicitors who charge £550 for this "service".

 

[ChrisCallaghan]

I'm finding the banks are so all over the place with this issue. Just spoken to a director whose company has been facing compulsory dissolution since July 2021 (suspended) - the bank (NatWest) has not said a word and just continued to collect the BBL payments as agreed.

 

[Nowornever01]

Its going to go to a debt collector regardless because HSBC complaints take 4-6 weeks to resolve.

Its possible I could get it reversed but who knows.

What would happen if its sent to a debt collector, would I be able to work out low monthly payments do you think?

 

[Nowornever01]

Hmm. Curious as to what BBB's track record is. The website implies it's some kind of official service, but it's just a private firm of solicitors who charge £550 for this "service".

The site looks legit, but you've made me double think this through.

 

[ChrisCallaghan]

Its going to go to a debt collector regardless because HSBC complaints take 4-8 weeks to resolve.

Its possible I could get it revered but who knows.

What would happen if its sent to a debt collector, would I be able to work out low monthly payments do you think?

I have spoken with directors who have managed to set up quite low monthly repayments once it's gone to collection agents.

Alternatively you could consider speaking to an insolvency advisor or practitioner about your options. Though not a path you'll want to consider for now, many in your position have chosen to liquidate their company and start again.

 

[Nowornever01]

I have spoken with directors who have managed to set up quite low monthly repayments once it's gone to collection agents.

Alternatively you could consider speaking to an insolvency advisor or practitioner about your options. Though not a path you'll want to consider for now, many in your position have chosen to liquidate their company and start again.

I'm not that clued up on this but I get the impression if you liquidate a company you can't be a director again for 6 years?

 

[ChrisCallaghan]

I'm not that clued up on this but I get the impression if you liquidate a company you can't be a director again for 6 years?

Not all - there is no automatic director ban following a liquidation. So long as you have not breached your duties as a director, then there is no reason to expect a director's ban. In short, if you had to liquidate the company, you would befree to start up again (though with some restrictions regarding re-use of company name).

Naturally there's more to the process that my brief explanation, but most insolvency practices would offer you a free consultation to explain the process in detail.

 

[Nowornever01]

Not all - there is no automatic director ban following a liquidation. So long as you have not breached your duties as a director, then there is no reason to expect a director's ban. In short, if you had to liquidate the company, you would befree to start up again (though with some restrictions regarding re-use of company name).

Naturally there's more to the process that my brief explanation, but most insolvency practices would offer you a free consultation to explain the process in detail.

Thanks, it doesn't seem like the best idea but I could be wrong.

We are looking for VC funding at some point in the summer and not sure how this whole fiasco will effect everything.

 

[STDFR33]

If debt collectors are instructed, engage with them. Let them know what's happening and that it's currently in dispute, potentially going through the ombudsman. They'll probably leave off badgering you for a few weeks.

It's not like debt collectors have any powers. They're just beggars with an office.

 

[ChrisCallaghan]

Thanks, it doesn't seem like the best idea but I could be wrong.

We are looking for VC funding at some point in the summer and not sure how this whole fiasco will effect everything.

Hopefully you find a solution that does not require having to take insolvency advice. Should you need insolvency advice in the future, myself or other UKBF contributors would be happy to help. @Lisa Thomas , @Gavin Bates & @Chris Parkman are regular contributors in the insolvency threads here.

 

[Nowornever01]

Thanks guys I'll keep you all updated.

 

[Nowornever01]

Do we know of the name of the debt collectors for BBL, is it Advantis?

 

[japancool]

Advantis is used for collections by HMRC, but it should be whichever collectors the bank want to use, I think.

 

[Lisa Thomas]

I'm not that clued up on this but I get the impression if you liquidate a company you can't be a director again for 6 years?

I wonder if you are perhaps getting confused with how long an individuals credit rating is damaged in personal insolvency? The only thing stopping an individual from being a Director again is if they are disqualified - which can be for between 2-15 years, or if they are bankrupted, which usually last for 1 year.

 

[Nowornever01]

Okay so the 4-6 weeks quoted ended up being a 24 hour turnaround.

I think HSBC just want to wipe their hands of the loan, I don't think there is really anything in their interest to keep us a customer as we only used HSBC to get the loan and primarily use Starling as our bank.

Thank you for your recent contact regarding the BBL.

I’m sorry you’ve had to complain
I assure you we take all complaints extremely seriously and have completed a full investigation into your concerns.

Your complaint
I understand you are unhappy that a Final Demand has been issued for the remaining balance of the BBL.

My investigation
Following a review of our records, I can see that our processes have been followed correctly. We wrote to you to advise you that there were arrears on the BBL and a Final Demand was issued on 15 February 2022 as no remedial action had been taken. I'm sorry if you did not receive our letters.

Although I understand your frustration surrounding this, I trust I have clarified the bank's position on the matter.

 

[Ray272]

Sounds like HSBC are still a bunch of duds. Letters, no proof of delivery, no comms. Absolute disgrace. Their issue not yours. Even the banks now have internal messaging and they still send post. It's a great pass the buck method that wastes time, costs more and as we can see, sometimes completely fails. Resolver, Martin Lewis Facebook. Out them online from all angles loud and change banks quietly.

 

[UK Contractor Accountant]

Okay so the 4-6 weeks quoted ended up being a 24 hour turnaround.

I think HSBC just want to wipe their hands of the loan, I don't think there is really anything in their interest to keep us a customer as we only used HSBC to get the loan and primarily use Starling as our bank.

My understanding is that the BBL banks can not do anything until after 12 months of the issue of the formal demand for repayment unless fraud is suspected. The will, of course, have to follow their normal recovery procedures which can include engaging debt collectors.

After 12 months the Bank can then, if they wish, invoke the Government Guarantee .The process for recovering overdue loans in the Bounce Back Loan Scheme as agreed between the government and lenders in December 2020. No formal Insolvency proceedings are required to invoke the Guarantee.