Glad to report that the high street banks have all got their Bounce Back Loan top-up systems live, however as predicted many people are experiencing all manner of problems trying to top up their loans. With that in mind here is an overview of the problems and complaints I have received and come across.
Banks Paying Top-Ups
Those of you wondering, these are the banks that are now paying out Bounce Back Loan Top-Ups:
- HSBC (Business Accounts not Feeder Accounts)
- Bank of Scotland
- Royal Bank of Scotland
- Santander (some reports not a huge number)
- Yorkshire Bank
- Clydesdale Bank
Incorrect Turnover Figure
All banks are playing hardball when it comes to the turnover figure you entered when initially applying for a Bounce Back Loan, and as such it will be that figure they will work on when it comes to you being able to top-up your loan or not.
Many people cannot remember what figure they entered, some now state the figure they entered was incorrect and some are being told they cannot get a top-up as they do not mean the minimum £1000 threshold for a top up.
If you are 100% convinced the lender is wrong, and you are entitled to a top up you are going to venture into the unknown. However, ask the lender for proof of the figure you entered as your turnover when you originally applied for a Bounce Back Loan as mistakes can happen.
Most banks will automatically work out what you can claim as a top-up when you apply for one, however some are not doing.
You can, as the rules stand, only get 25% of your estimated/declared turnover up to a maximum BBL of £50,000 less what you initially got as your Bounce Back Loan.
Example: Your turnover was £100,000 you applied for a BBL of £5,000 that means you can now claim up to £20,000 as a top up. (25% of £100,000 is £25,000, you had £5,000 so you have access to a top up of £20,000).
If you think the lender has messed up, complain, you will be at their mercy and the “no turnover adjustment” rule though.
HSBC Feeder Account Top-Ups
I have now christened HSBC Feeder Accounts “Zombie Accounts” for they were disposable bank accounts with one purpose, that being to fire out your Bounce Back Loan to another bank account, and were offered to non-customers of HSBC.
Those accounts closed automatically when used once to fire out your BBL, and as such if you used one to get a BBL from HSBC those accounts need bringing back from the dead, and that is going to take some time. So, expect to wait until HSBC sus out how to do that and get a top up fired out to you. You will have to get a new EchoSign sent out to you once the Zombie Account comes back to life and sign it etc so expect delays.
Original Bank Account Closed
NatWest, Barclays and Lloyds and a few other banks have, over the last few months, been closing accounts of customers who took out a Bounce Back Loan with them.
As such you are going to face a few problems if you got paid out a BBL with any of those banks and was then dumped by them and moved your funds over to a new account with another bank.
The rules state you can only get a top-up with the original lender who gave you a Bounce Back Loan. As to how you go about doing so, speak to the bank in question and if you get no joy ask your MP to step in and contact the bank on your behalf as this is a grey area and one that there appear to be no rules to handle.
Declined for Dubious Reasons
I have seen a few complaints about people getting told they cannot have a top up for all manner of dubious reasons, such as you haven’t been using your business account as often as the bank would have hoped or even you moved out your funds sharpish when your original Bounce Back Loan hit it.
The reason why people moved their funds out was they saw huge numbers of complaints about banks snatching back loans from other people after initially paying them out. No one sane can blame anyone for doing that.
If you do get refused a top up for any reason, other than you are not eligible for one based on the amount you initially claimed, then appeal that decision, and don’t stop badgering the bank until you speak to someone with a brain who can help, once again get your MP involved if needed.