stiscooby

If any of you lot out there are legal bods then I would appreciate some help/advice, my story goes (sorry it’s a bit long)…………..

About 2 years ago myself and a so called good friend at the time was going to start up working for our selves (computer business). He had been made redundant due to lack of work and he had nothing to loose so we decided that he would start up the company and get things going while I stay at what was my current place of work at the time and I would then join him later on after things got going.

So he setup a bank account which we both had to put our names down on so could only take money out with both our signatures on chq’s etc (this is where the problem is).

Anyway, he lived about 15 miles down the road and didn’t have any transport for a while so on a couple of occasions he had a lift round to mine and asked me to sign a couple of chq’s as he needed to order some parts/stock in for work that he had quoted for, so I signed a few so he didn’t have to keep coming back as it was difficult at the time with his lack of transport (yes the chq’s were blank and yes looking back I was very stupid).

Now with one thing and another the business never really got off the ground and I decided that I didn’t want to go in with him and told him so. This wasn’t a problem as shortly after this he was offered another full time job which he took up. I asked him to have my name taken off the bank account he said no problem I have sorted that and he was in the process of closing the account.

Now about 7-8 months past and one day I came home and there was a letter for me from some debt management company to say I owed them over £1800!!!! This was a huge shock to say the least, got straight on the phone to find out what the hell was going on and it turned out that my so called friend had actually kept the business bank account open and had actually been using those chq’s I signed months ago for his own personal use at the time! The bank told me things they were used for by him i.e. transferred money into his own personal account, shopping at Safeway etc etc!!!!

I thought what the F*CK! So went straight round to his house to have a “word”. Anyway got him to put it in writing that he admits I had nothing to do with the outstanding debt and I didn’t even know the account was still open and that he requested for my name to be removed from this whole scenario.

Been in contact with the said bank on many occasions to try and get this nightmare sorted (this has been going on for nearly two years now) who at one point said we can not remove you from a joint business account when it’s over drawn. Then was told only way around it was to change the account into a sole traders account, so spent about to weeks for said bank to pull their fingers out to send me the form, backwards and forwards to “friends” house to get him to fill it in etc……….then one day phoned bank to ask a question about the form and was told that I could change it to a sole trader so had spent 3-4 weeks trying to sort it out then to be told that can’t do it!!! Aahhhhhh!!!! I had been told by different staff that I could do this then to find out I couldn’t really pissed me off!

So called friend had spoken to bank on a number of occasions to setup a “re payment” plan to start paying the money back, then he would stop paying and the bank would try to chase him up and couldn’t because he had moved a few times. So they then passed it on to Debt Company to chase up the payment and he would start paying again when I went round to “see” him. Then a month or so would pass and I would get another threatening letter saying hadn’t kept up re-payments even though I hadn’t even set any up it had all been dealt with with the “friend”.

Then Debt Company wouldn’t have any luck getting the money back, the account would then be referred back to said bank. He would then make few payments, I would think it’s all going nicely then guess what? Yep I get another letter to say I have failed to keep up payments! This just keeps going on and on round it circles and it now has to be sorted because it’s taking the ****.

Anyway to cut a long story short this has now been going on for just about 2 years, we are going round in circles here, bank says they can’t remove my name from the account and its basically tuff. They just want the money back, they don’t care who pays it! But I don’t see why I should pay it when it was sod all to do with me.

Going to go see a solicitor to see where I stand legally but I just wondered if any one on here can give me any advice? Or am I basically Fecked? It’s not that I can’t afford to pay it but I don’t see why I should? Even though I have it in writing from him that he had me sign chq’s under false pretences etc.

Sorry it’s so long but any advice would be much appreciated

carl

Was it a Limited Company?

stiscooby

No, which is where I think i am buggered!

carl

stiscooby

It may well sound stupid but I don't think it was a Ltd company. The "friend" set the company name up and letters that are delivered don't have "ltd" on from what I remember?

Am I right in thinking that if it was/is a Ltd company it would be ok in some way i.e. I wouldn't be held responsible for any debts etc?

carl

Yep. If you know the company name you can check on the Companies House website. http://ws2info.companieshouse.gov.uk/info/

However, even with a limited company you can be personally liable if it's proven that you acted negligently. Unfortunately one of the rules of directorships is that all directors are equally liable, so if one of them is acting fraudulently it's the others' responsibility to ensure that they are aware of the situation. So you could still be stuffed

How much is outstanding? I assume less than £1800. Personally, I'd just pay it and then try to recover it from the other bloke (maybe you have some "persuasive friends"). Unless it's five digits or more, it's worth it to stop it being a burden on you.

ProperCharlie

Even if it was a limited Co., banks nearly always make directors sign a personal guarantee (jointly & severally liable etc etc ) to make sure they can chase you for their money when it goes t*ts up.

Suresh

If your genuine signature is on the cheques then you authorised the expenditure. Quite difficult to deny that fact.

Tend to agree that you should pay up to avoid being black-listed and then try to recover the monies from your business partner either privately or in the small claims court.

Wish you success.

Suresh

carl

Actually that depends on whether you've taken out a loan or not. My company has a £1500 overdraft facility and a £3000 credit card facility, and I haven't had to put up a personal guarantee. Although they did say if I wanted to borrow any more I would have to -- which I refuse to do, as it negates a lot of the benefits of limited liability.

stiscooby

Thanks for the info guys.

Yea I have thought about paying it off then chasing him for the money but I have since found out that he is in debt by many thousands (about 15K) and has several different company's chasing him, so if he clears off and I can't find him then i am stuffed!

I have been told by the said bank that the out standing amount of just over £1400 is a fixed amount and it will not gain any interest. If however it ends up going to a debt company who actually come visit you then they are bound to add charges so if it got to that stage then I would pay it just to stop it building up.

Where would I stand if I went round his house and removed some goods? I'm guessing the law in this country would prob have me in a sell in five mins flat even though he been pissing about for years now!

I have searched for the company name but it is not listed?

ProperCharlie

just offer to either: pay 'em £800 now

or

£10 a month for the next x number of years.

carl

If there's one thing I've learnt over the years it's this: for trivial sums like £1400 it's just not worth bothering. If you fight it you could end up with thousands down the drain. Pay up and put it down to experience.