I used to have a small business of which my father was a director. The business borrowed an amount from the bank. Due to familly problems ie disabled sons, I moved house. Unfortually due the the circumstances I had to cease trading and left an amount in the bank to cover repayments. I informed the bank of my new address and my personel current details came to the new address. However, two years on my Father has been contacted by a debt collection agency saying that this money is owed. My father is liable as he was the garantor for the loan. We have looked into the old statements and it is apparant that some money is out standing. However my father is 84 and getting very stressed at the situation. Yes I wish to pay the money in installment but only to the bank. Surely they should have written to i or my father (both directors) to bring this outstanding amount to our attention. What can I do ?? Have I got any legal rights to pay the bank back and not this debt recovery agency???
2007-10-28 21:41:15 · 3 answers · asked by Anonymous in Business & Finance ➔ Small Business
The way debt collection agencies work is they buy debt from companies at a low rate and then go after the responsible party. The bank has already been paid by the collection agency and they are the new lien holders. You can still pay the debt back in installments and it will be interest free, so there is an advantage to it. Sorry about the situation.
2007-10-28 21:47:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Well it is the bank that has consulted the agency so it can only be the bank that that can alter things so you pay them direct.... The bank might have sold the debt, so that you do not owe the bank anything now, only the agency... You will have to find all this out from the bank...
2007-10-28 21:48:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I think the bank should have contacted you first and maybe it did contact your father who thought that seeing he had retired he could safely ignore it. However the fact is that you owe the money and it must be paid. I do not know the circumstances but I think you should contact the local director
2007-10-28 21:55:27 · answer #3 · answered by Scouse 7 · 0⤊ 0⤋
Unfortually?
2007-10-28 21:43:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋