Here is another case from the files of Complex Law, who specialise in helping those who have got into all manner of legal difficulties with a Bounce Back Loan, and as this case proves, when Barclays Bank mess up, they do so in style.
Cases such as this one are common, and as you may recall, I have reported on many similar cases, and having recently told you that HSBC Were Also Ordered to Write Off a Bounce Back Loan, Pay Compensation and Called “Disingenuous” For Keeping Quiet About a Known System Error on Their BBL Application Form Which Ignored Which Box You Ticked Entirely, it’s good to see those affected are getting their cases handled and to their satisfaction.
Overview of the Case
In March 2020, Mr L applied for a Bounce Back Loan (BBL) for his company, initially set up in July 2019. He intended to use his newly formed limited company’s credentials.
However, due to a mix-up, the loan application details referenced his previous business account at Barclays.
Despite his best efforts, including multiple communications with Barclays, the loan was incorrectly processed in his personal name.
This led to substantial personal stress and financial complications, especially once the business model became non-viable and the company was struck off.
Mr L’s ordeal involved being held personally liable for the company loan, which was a direct result of the bank’s oversight in processing the application details.
The loan, intended for his company, was disbursed into his sole trader account, and this error was not rectified despite his attempts to resolve it with the bank.
After an exhaustive process, we brought this case to the Financial Ombudsman Service, which ruled in his favour.
The decision highlighted Barclays failure to correctly process the BBL application and acknowledged the undue stress caused to Mr L.
The ombudsman directed Barclays to write off the loan, correct the credit record, and compensate Mr L for the distress experienced.
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