RBS/Natwest- how they operate 1.

Commonly, but not always, easier personal guarantees to contest than other banks due to the rarity of positively ensuring their customers to get legal advice. They also tend to scan and/or microfiche documents rather than keeping originals.

 

They, like most banks argue vehemently that they are not required to keep originals so this matter has to be handled sensitively if you are not going to end up with having the expense and trauma of dealing with solicitors acting on their behalf.

 

They have a customer service centre based in Telford that deals with personal guarantee and overdue debt issues, which is often haphazard in their communications.

 

For more information, have a look at our website at www.personal-guarantee.co.uk

Lloyds- how they operate 1.

Their centre for dealing with most personal guarantee issues is in Bristol. Local bank managers normally send the first letter or set of communications and often try and get a deal done- however, they have limited power to negotiate.

 

Lloyds do the right things, by offering fixed repayment figures over periods of time as part of their demand or follow up letter.

 

They also tend to perform better than other banks in preparing PG documentation, but don’t use that as a reason to cave in- they are by no means perfect!

 

For more information, have a look at our website at www.personal-guarantee.co.uk

Barclays- how they operate 1.

Their central base for dealing with pg issues is in Cardiff, sometimes a bit quick off the mark going legal, particularly if they think there are some assets to grab. Tend to be better at ensuring clients get solicitors advice at the outset but again, inconsistent in this as well as other areas.

There may be some initial communications form the local branch but for the most part it is Cardiff that do the bulk of the chasing.

Tend to get a bit feisty when asked for original documents, strongly denying the need for them to be produced.

For more information, have a look at our website at www.personal-guarantee.co.uk

HSBC- how they operate.

In the last 15 months or so, we have seen a department allegedly based in Canary Wharf but actually based in India manage collections regarding PGs- the long Indian names and .in email addresses tend to give them away. However, they are difficult to contact and relatively slow to respond, which is great under normal circumstances if you are fighting a war of attrition but dreadfully frustrating if you actually want to do a deal. We have seen a recent move by HSBC to use their internal Birmingham based resource, Metropolitan Debt Collection Services and DG Solicitors, but again find they can be just as ineffective in pursuing on behalf of the bank. For more information, have a look at our website at www.personal-guarantee.co.uk

Mainstream bank centres for dealing with Personal Guarantees

In each of these blogs, I will try and provide some insights into how the institutions such as banks approach their calling in of personal guarantees.

Most of the mainstream banks have centres that deal with the chasing of personal guarantees- so although the local manager might send the initial demand letter and try to negotiate a repayment plan, they have little authority to do a deal and will often suggest taking an interest bearing loan.

An agreement at this stage would be a result for the bank, but certainly not for the person who signed the personal guarantee!

However, the longer the matter is being dealt with at this level, the more time the personal guarantee holder buys themselves, so don't be in too much of a hurry to move it on to the banks' centre! And remember, many personal guarantees are at best dubiously enforceable and many are not enforceable at all.

Personal Guarantees

After a leave of absence from the blogging world, I am now rejuvenating my blog to cover all things to do with helping people who have personal guarantee claims against them. For some good background and support on the matter, go to my website www.personal-guarantee.co.uk . Twice weekly, I will provide an update through this blog on the latest that is going on in the personal guarantee world, with some particular insights in to the way particular banks are behaving and how that is changing.

YOU SIGNED A PERSONAL GUARANTEE, NOW THEY ARE CALLING IT

Your in trouble, right? The bank are writing some very strong letters so you have to pay, don't you? You're going to lose your house, aren't you?

Not necessarily- certainly no one should welch on a commitment they have made, but was your commitment legally made and if not, do you therefore really legally owe the money?

Not always. With personal guarantees, the banks can be notoriously bad at keeping their end of the bargain by not having their paperwork in order or being sloppy or otherwise inept at putting the personal guarantee in the first place.

And you can guarantee that if the boot was on the other foot, they'd make sure you know it and certainly they will leave you with the distinct impression that you do owe the money come what may.

So there is plenty of scope to contest the validity of a personal guarantee if it gets called and even if the bank do have everything in order, they generally want to do a deal anyway so all is not lost.

It isn't necessarily in their interest (and costs money for them) to bludgeon you into submission if you can't pay them any money anyway.

But hiding and hoping it will go away is just as bad as rolling over and letting them run over you- the consequences can be dire if you do not communicate with them. There is a balance to all this and communications that on the one hand races along or on the other are non-responsive on your side can lead the matter into difficulties, because if it goes too fast and the bank do not like what you are saying, the next step for them has to be court action.

It is the same if you do not respond to them- what else can they do?

Some solicitors are not much help either. They can charge a fortune and often not have the relevant understanding or skill to deal with the matter in your best interest.

So make sure you get good advice. Go to a solicitor or a professional who can demonstrate true success in this area and ask them for a reference from someone they have done it for. If they cannot demonstrate that, then they are not the right people to use- you will just spend good money after bad and still probably be on the wrong end of it all.