PG Tips (Frequently Asked Questions)
Are you always successful?
It is important to note, that despite all our successes, there are some claims which settle for higher percentages or even the full amount plus costs.
The statistics we measure and publicise on a regular basis demonstrate the success of what we do.
There are three elements to our strategy:
1. expose flaws in the ability for the guaranteed organisation to enforce the personal guarantee
2. have the affordability of the client to pay to be taken into consideration in any settlement
3. if appropriate, to buy as much time as possible for guarantors to get back on their feet in order to better able to deal with the matter.
But sometimes, it does not go the way we would prefer. This can be for a variety of reasons, some of which are:
- involving us so late in the process that the bank have already entrenched themselves in a position to only want to accept the full amount due.
- bank pursuing on security which is so indisputable and the affordability to repay is so adequately demonstrated that it is difficult to refute.
- in any court proceedings, a defendant is at the whim of the process and in particular the judge; the system is not there to be fair, it is there to try and provide justice; and it is costly.
- statements made about events and in particular making statements of truth that are easily countered; creating a severe credibility issue and puts the client and those representing them totally on the defensive.
That said, our overall performance demonstrates our dedication to do the very best that we can, and because we are dealing with more than 400 personal guarantees, you can be assured we are always at the forefront of developments in this area.
When should I contact you about a Personal Guarantee problem?
Please contact us as soon as possible. Experience tells us that we obtain better results the earlier we are involved in a case. If you are reading this because a personal guarantee is being called in, then you should take action now and get in touch.
My life partner is worrying about the implications of a Personal Guarantee; do you have any advice to help the situation?
This can be a very worrying time for you, but for a life partner it can appear even worse- if they are not on the inside track or not close enough to the situation, the lack of knowledge can put them in an even darker place.
Giving them as much information as they feel they require can often give them a feeling of understanding that may ease their concerns. But sometimes it can create more of a worry.
As a result of our experience, we are quite happy to talk it through with your partner to give them the comfort they need.
What about joint guarantors?
It very much depends on how it was set up - often it's joint and several, sometimes not.
There is a choice to be made between going it alone and acting in consort. From a solicitor's point of view, they may have a conflict of interest representing a number of different parties but it is worth weighing up which is the best way to go on this.
This is something that there is no panacea for all- it has to be considered on a case by case basis and there has to be great sensitivity to the relationship of those involved and what their personal circumstances are.
What about the banks' actions during the transaction?
Banks have to behave properly. If, in getting the Personal Guarantee in place they have acted improperly, this may severely prejudices their position. So knowing the circumstances as to how the Personal Guarantee was put in place in the first instance can often reveal these sorts of issues.
What about my other personal debts? Can you help?
Quite often in these situations your personal debt may have been built up as you have been trying to support the business with personal funds to keep it going. Although we do not do personal debt management, it is worth reviewing this in the light of the Personal Guarantee issue and there are external parties we work with who can assist in this matter.
The bank has a charge on my house in relation to the company debts/Personal Guarantee - how does that change things?
They would normally have much better security as a result of a charge on property and it does alter the dynamic more in their favour.
But they still have to have acted properly and the situation can be negotiated even if the cards are all stacked in their favour. So ensuring that they did is something well worth looking at.
What happens if I ignore the bank's letters and demands?
This can be such a hard place to be and that bucket of sand can look so inviting - but ignoring the issue won't make it go away, it will just accelerate the bank's action. Look at it from their point of view - if you don't respond, then the only way they can go is to court for enforcement. And the further down the road that is, the harder it is to unwind. So early commencement of discussions are terribly important.
Why should I not just do this myself?
Again, no reason why you shouldn't.
But our experience in this field is extensive, and inappropriate or untimely communications (either not responding quickly enough or just as bad can be too quickly) can get you in a place which is hard to get out of. It is always worth having a chat first.
If I use your service, how much will it cost?
It very much depends on the circumstances. Our preferred method of working is to provide support on a fixed monthly fee.
It does need to be considered on a case by case basis because sometimes it can be very complex, but more often than not it isn't. If the matter is being pursued through the courts, a solicitor will be needed which changes the cost dynamic. However, choosing the right solicitor can be very hard to do. Rest assured, because we do what we do, we work with an expert solicitor in the field who also (thankfully) does not charge like a wild boar!
Why should I not go to a solicitor?
No reason why you shouldn't. But if you do, be sure they have experience in this field. Ask them for case studies and ask to speak to a number of clients they have worked for on this issue and that they have succeeded with. If they are reluctant to do so or they fob you off, then you'll know the answer.
If they have the track record - great. But if they don't, you could be just incurring substantial extra cost and actually end up with a worse deal.