Dissolved Company Question

[944pi]

Hi All,

Currently having some problems with my bank at the moment. I disolved my old contracting company in October 06 and subsequently informed my bank asking them to close the account as it was approaching zero balance.

They didn't close it and continue to apply bank charges to it which has pushed it into the red. When I spoke to the bank they said I should pay some money in to cover the charges. I have asked Companies House about this issue, i.e. when the account can be closed, but they just point me to the FAQ about dissolving a company.

My bank are now threatening to unleash untold misery on me by passing the debt to their debt collection department and registering it with a credit reference agency. All seems a bit much for £10.23 though!

Anyone know what should happen next? Or should I just surrender and keep on paying the bank charges until the crown says it can be closed?

Thanks, Phil

Edited by 944pi on Tuesday 6th February 11:47

[Eric Mc]

If you have WRITTEN and dated evidence that you instructed the bank to close the account I would stand my ground.

If it was a verbal instruction, then it would be much harder to prove that the instruction was ever given. In that circumstance I would just pay the £10.00 outstanding.

[944pi]

Thanks for the speedy reply Eric.

I gave written instructions along with a copy of the dissolution notice. It was only in a subsequent call that they told me they couldn't close it until the crown tells them to!

Although as my fixed-rate mortgage comes to an end in the summer I will pay some more cash in to stave off any negative reports on my credit rating.

Phil

[Eric Mc]

They are talking rubbish.

A company is not obliged by law to have a bank account. There are plenty of dormant companies in existence which do not have company bank accounts.
The bank probably has an internal policy (note - not a "law" that they do not close accounts until the company is formally dissolved at Companies House. They might think that protects them from the company closing down whilst still owing them money. However, in that case they would:

a) already be aware if the company owes them money

b) formally apply to Companies House to have the disollution/striking off of the company suspended until their debt is cleared.

In this case, the bank were not owed any money, originally anyway, and had no grounds on which to not accede to your request.

Maybe this is a case for the bank ombudsman to consider.



Therefore, they should have closed the account down at the time you instructed them to.

Edited by Eric Mc on Tuesday 6th February 12:51

[plasticpig]

944pi said:

My bank are now threatening to unleash untold misery on me by passing the debt to their debt collection department and registering it with a credit reference agency. All seems a bit much for £10.23 though!

Anyone know what should happen next? Or should I just surrender and keep on paying the bank charges until the crown says it can be closed?

Thanks, Phil

Unless you personally guaranteed the account they can not pass your name to a credit reference agency. The debt is the companies not your personal debt. If you are closing the company down why worry about it having a bad credit rating?

[944pi]

I asked Companies House again about when the bank account can be closed and they sent me a number for the Treasury Solicitor and said "I would imagine as the company is dissolved and no longer exists, the bank account can be closed but you may need to seek the advice of the Treasury Solicitor on 020 7210 3116"

So, I looked up the Treasury Solicitors site on Bono Vacantia (Vacant Goods) who have a guideline for banks that seems pretty clear to me

Following from www.bonavacantia.gov.uk/default.asp?PageId=1401

Treasury_Solicitor said:

12. When you learn that a limited company holding an account with your bank has been dissolved, please send this office the following:

a cheque made payable to the Treasury Solicitor for the credit balance in the account;
a letter setting out the name of the dissolved company that held the account, the company number and the date when the company was dissolved;
a bank statement showing all payments out of the account after dissolution (other than bank charges).
Information about whether a company has been dissolved can be obtained from Companies House in Cardiff (tel. [phone] or at www.companieshouse.gov.uk).

13. It is our current policy to collect ALL credit balances owned by dissolved companies, regardless of the amount involved.

So, a letter will be at the bank tonight with this information and I will point out that the negative balance (it was positive in November when I told them to close the account) is down to them as they should have followed guidelines from the Treasury Solicitor or at least give me a reasonable explanation why they can't.

Thanks, Phil

Edited by 944pi on Tuesday 6th February 18:07

[944pi]

Finally some success.

So, I went into the bank with a letter that detailed what I said on the previous post asking for the account to be closed again and that I wasn't responsible for the charges. On Thursday this week I received a pre-advice of further charges to be applied; On Friday a statement with the charges on and today I received a final statement -



So they swallowed the charges - the £17.79 was refund.

Thanks for the help everyone.

Phil