Santander UK business account overdraft

[stevetuk]

Our LTD company is going through insolvency (CVL) currently.

We have a Santander UK business account with a £5K overdraft facility of which we were using £3.8K at point of winding up.

We've received letters from the bank calling in repayment of this debt. We don't recall signing any PGs, can't find any paperwork to suggest we did, and can't see anything in the General or Business Account Banking Terms including on the Santander website.

We called a couple of weeks ago and they advised this was for the named LTD not us personally but the letters keep coming and seems to be escalating.

Any advice before we call again? I'm concerned that without anything confirming we aren't personally liable in writing, we will be forced into an agreement with them.

 

[StevensOnln1]

If your company is going through a CVL then presumably a liquidator is dealing with it. If that's the case you should forward the letters to them and advise Santander that you are unable to deal with the company's affairs as it has entered liquidation.

 

[MikeJ]

Also, it's down to them to show there is a PG. Not the other way round.

 

[ChrisCallaghan]

Hi @stevetuk,

If your company is going through a CVL then presumably a liquidator is dealing with it. If that's the case you should forward the letters to them and advise Santander that you are unable to deal with the company's affairs as it has entered liquidation.

I'm afraid the liquidator can't assist with any PG claims.

Also, it's down to them to show there is a PG. Not the other way round.

This . It is pretty common for banks to ask for personal guarantees for overdraft facilities, but Santander now need to evidence how and when you've agreed to any guarantee.

 

[IanSuth]

Hi @stevetuk,



I'm afraid the liquidator can't assist with any PG claims.

This . It is pretty common for banks to ask for personal guarantees for overdraft facilities, but Santander now need to evidence how and when you've agreed to any guarantee.

So the correct action is to reply to the next one stating that as the company has entered liquidation unless they can show evidence of a personal guarantee all claims should be forwarded to the insolvency practitioner to be dealt with by them and give them the details.

 

[Mark T Jones]

The opening post doesn't state that Santander are calling in PGs, merely that the OP believes they haven't signed any.

For clarity, can you confirm whether the letters are aimed at you personally or at the company?

 

[Lisa Thomas]

It might just be a case that they haven't updated their records to reflect the liquidation, yet.

As long as you definitely haven't signed a personal guarantee, and the debt to the bank is owed by the company, there should be no issue.

 

[numbersrule]

On the point of who the letters are addressed to, it seems to me, based on my own experience with Santander that they do sometimes address correspondence about business accounts in the name of an individual. There have been occasions at end of years when Accountants have requested clarification that a bank statement, for example, is indeed a business account, because they had noted that my name appeared on it instead of the company even though it is absolutely and firmly a business account.

This observation would be consistent with the OP comment that Santander are saying the letters are for the business even though the way they are addressed is creating uncertainty,

More generally, I am noticing that Santander are not the only organisation with this trait.

For example, increasingly, I believe HMRC on occasion do also address letters to businesses inappropriately. In HMRC's case this seems to be inexperienced administrators.

However, for Santander I believe it is a fundamental bug in their Bank Account correspondence set up.

 

[WaveJumper]

Go back and check with the bank in the first instance, but have a read here of their business T&Cs section 7.2

https://www.santander.co.uk/assets/s3fs-public/documents/business_banking_general_terms_and_conditions_and_important_information_jun21.pdf

 

[Paul Kelly ICHYB]

Are they writing to you as a director of the business?

Also, please say that you do not have a personal account with Santander?

 

[MikeJ]

Go back and check with the bank in the first instance, but have a read here of their business T&Cs section 7.2

https://www.santander.co.uk/assets/s3fs-public/documents/business_banking_general_terms_and_conditions_and_important_information_jun21.pdf

That's the 7.2 on page 26. It's one of those awkward documents that starts renumbering at a new section.

I'd rely on 4.4 on page 10.