Personal guarantees with a charge on a personal property.

If the bank took a charge on a property at the time of or as part of a personal guarantee being put in place, they have a duty of care to ensure that a co-owner (not intricately involved in the business) of that property is fully informed on the situation. So, for example, if the financials of the company are not in good shape, the bank needs to ensure that the co-owner is aware of the risk they are exposing themselves to.

Also, if the bank offered new facilities whilst relying on such a personal guarantee and charge that had been put in place sometime before, then again they have a duty of care to imform that co-owner of the circumstances and obtain their consent.

The bank cannot necessarily rely on the involved partner giving all the facts to that co-owner.

For more information, take a look at our website personal-guarantee.co.uk, or give us a call on 0845 055 8457 0845 055