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Alice H
Alice H, Solicitor/Partner
Category: UK Law
Satisfied Customers: 2847
Experience:  Partner in national law firm
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I signed a personal guarantee with travis perkins

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I signed a personal guarantee with travis perkins which stated in a box at the end of the contract'


and his/her trustworthiness of business to the extent of'...... £1000.


[I entered the amount before returning the contract] they are asking me to pay £1901.74 do I have to pay it all or just the limit stated on the contract of £1000


 


 

My name isXXXXX and I am a Solicitor based in London. I'm happy to help with your question today.

Have they explained why they want more than the amount you guaranteed?
Customer: replied 3 years ago.


simply because £1901.74 is the balance outstanding


the company went into receivership in march 2013


and they are pursuing me personally for the money owed.


I realise with a personal guarantee that I have it to pay,


but my question is... my personal guarantee was for £1000 limit, therefore surely, they should have stopped my credit once it reached that amount.


am I liable to pay the whole amount or just the amount I actually accepted [signed] responsibility for.


they have asked me for a reply with my proposals for payment within 7 days. I have been considering offering 'full and final' payment offer of £1000 only and would ask if I can pay on a staged payment plan

Customer: replied 3 years ago.


there was a section on the back of the contract which is a 'status enquiry: continuing specific authority'


which was to be forwarded to my bank.


this is an instruction to the bank to provide travis perkins with a reference on request.


in the part which asked the bank 'his trustworthiness of business to the extent of £..........


I personally put in the amount of £1000


in my copy of the contract the figure of £1000 is still showing but has not been filled in by the bank at all.


the contract was signed in april 2003 and under my signature it asks what amount of credit the company requires. the amount of £1000.00 was entered and signed for

Thanks.

Your liability is limited to the amount of your personal guarantee.

As a matter of contract law you cannot be expected to pay more than you agreed.

If the company is owed they will have to pursue the debtor.

But if the guarantee you gave was limited to £1,000 then that's all you're liable for.

You can contact the creditor and make this position clear. You can also tell them that you are in a dire financial crisis. If you do this may decide not to pursue the matter. But if they do you can certainly offer to pay your part by installments.

Hope this helps.

Alex
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