starling bounceback news

[shadowx]

What has happened to those with bounceback loan on starling, have they been waived and not need to pay it?

Starling has also been fined

""As a result of issuing a number of non-compliant loans, Starling volunteered to remove the government guarantee on those loans, which resulted in it having to set aside a £28.2billion provision"

"?Starling volunteered to remove the government guarantee on those loans, which resulted in it having to set aside a £28.2billion provision. ""

Starling takes a £28m hit from Covid bounce back loans

The digital-only bank has faced questions over many years about its oversight of state-guaranteed lending during the pandemic

www.thetimes.com

 

[Elliot Green]

A loss of some of the government guarantee for a Bank is not likely to be a debt waiver for the ultimate borrower; the borrower didn't apply for monopoly money so it is hard to see why such a debt would get waived.

 

[shadowx]

A loss of some of the government guarantee for a Bank is not likely to be a debt waiver for the ultimate borrower; the borrower didn't apply for monopoly money so it is hard to see why such a debt would get waived.

I used the loan for something else, and ended up being a scam and lost it, was not used for business, they are aware of this, still on payment plan. As I cant afford payments would it be easy to close the company?

 

[Elliot Green]

You would have to go into Liquidation in all likelihood. Liquidation would close the company.

 

[shadowx]

You would have to go into Liquidation in all likelihood. Liquidation would close the company.

would liquadiation have any affect on me, as lost the loan on fraud and maybe they will think its not used for business

 

[Elliot Green]

would liquadiation have any affect on me, as lost the loan on fraud and maybe they will think its not used for business

If a bounce back loan has been misapplied ie. not used for the economic benefit of the business, and the director's loan account goes overdrawn as a result (and perhaps is never repaid) then there are potential consequences such as:

1. Personal liability of an overdrawn director's loan account "ODLA".

2. Possible director disqualification.

There's a very recent blog on our website site which explains the consequence of an ODLA.

Both types of issue may in general terms develop independently from Liquidation.

 

[shadowx]

If a bounce back loan has been misapplied ie. not used for the economic benefit of the business, and the director's loan account goes overdrawn as a result (and perhaps is never repaid) then there are two potential impacts to begin with:

if i used ur liquiduation service, how would u help?

 

[Elliot Green]

if i used ur liquiduation service, how would u help?

Our contact details are below if you wish to discuss issues further.

 

[shadowx]

1. Personal liability of an overdrawn director's loan account "ODLA".

does this mean personally paying and must be paid?

 

[Elliot Green]

does this mean personally paying and must be paid?

If the accounting effect of a director misapplying bounce back loan funds results in an ODLA which is not cleared, then in such circumstances a director would be liable. The facts of your case might be different.

 

[Paul Kelly ICHYB]

I used the loan for something else, and ended up being a scam and lost it,

So, you scammed Starling to get the funds and then you were scammed....?

Take responsibility and pay the loan.

 

[Mark T Jones]

The guarantee is between the bank and the Government.

Without the guarantee, there will be far greater emphasis on Starling to recover loans themselves - which may extend to talking action against you personally for fraudulent application or inappropriate use of funds.

 

[Lisa Thomas]

would liquadiation have any affect on me, as lost the loan on fraud and maybe they will think its not used for business

You would be at risk of being pursued by the liquidator personally for misconduct known as 'misfeasance' due to the misspending of the funds.

 

[shadowx]

So, you scammed Starling to get the funds and then you were scammed....?

Take responsibility and pay the loan.

Yes I am already on payment plan repaying back the loan, but realistically how long will this repayment period last? Even in 4-5 years the full amount won't reach by the monthly amount, so how long will banks allow this?

What will happen in 10 years?

 

[Mark T Jones]

Yes I am already on payment plan repaying back the loan, but realistically how long will this repayment period last? Even in 4-5 years the full amount won't reach by the monthly amount, so how long will banks allow this?

What will happen in 10 years?

You'll still owe the money, unless you step up payments

 

[WaveJumper]

You'll still owe the money, unless you step up payments

I am not sure I understand why anyone who "borrows" money thinks they never have to pay it back, or look for a way on welching on their agreement. I don't care what people borrow money for but they need to take responsibility for the debt

 

[Elliot Green]

You'll still owe the money, unless you step up payments

Generally has to be deemed trust property appropriated for personal benefit to survive 6 year limitation period.

There are other ways of losing limitation period defences as well but Burnden Holdings (UK) Limited v Fielding is a common one in insolvency.

 

[Mark T Jones]

I am not sure I understand why anyone who "borrows" money thinks they never have to pay it back, or look for a way on welching on their agreement. I don't care what people borrow money for but they need to take responsibility for the debt

'Welching' takes me back to my first ever training course in collections

The collections manager, commenting on polite letters 'if it was down to me, they all start Dear welching b@stard...'

 

[Lisa Thomas]

Yes I am already on payment plan repaying back the loan, but realistically how long will this repayment period last? Even in 4-5 years the full amount won't reach by the monthly amount, so how long will banks allow this?

What will happen in 10 years?

How much was misspent?

Possible you could repay and liquidate in court using the repayment, or potentially do a deal with an IP to liquidate voluntarily, using the repayment of the funds to cover their costs.