banks responsibility

I'm no lawyer but I wouldn't be suprised if you got exactly nowhere with that argument. The bank can't tell you they're a `bad bet` - that would be libel. They just facilitate your transactions.

I'd get a solicitor.

A bank cannot divulge any information about an account to a third party without written consent. If you decide to transact business which goes belly up - tough. If on the other hand you asked Barclays their opinion on the company (and the company gave you written instruction to reply) then that is a different matter. Eric

In message , Wildcard writes

Why is it obvious?

What makes you think they knew? And if they did, what difference does it make?

All I can think your associate is referring to is that Barclays may have somehow 'preferred' themselves when the business went bust so as to make sure they get their unsecured dosh back and other unsecured creditors, like yourself, get nothing or less than their air share, but you have not given us anything like enough info.

What has your debt to Barclays got to do with it? And why did you mention it?

Don't waste your time and effort on this.

Barclays' *customer* owes you 2.5k. *You* owe Barclays 2.5k. There is virtually no circumstance where Barclays could be liable directly to you for the 2.5k its customer owes you.

In rare circumstances, a liquidator or administrator of Barclays' customer could pursue Barclays for an unfair preference, if somehow its customer paid cash to Barclays when it should have gone to other creditors such as you. However, even if successful, Barclays would owe the customer's estate (in liquidation) the 'preferred' cash, not you directly. That cash would then form part of the estate which is made available (after costs and preferential creditors) for the general body of creditors, which presumably would include you.

My advice - on the basis of the circumstances you outline - write off the debt owed to you and talk to Barclays about a repayment schedule for what you owe them.

(I'm an accountant and insolvency practitioner).

Thank paul I appreciate your advice and credentials but if the company had been on a downward spiral for a while wouldn't the bank have an obligation to step in to stop it increasing its debts?

TIA

No, not at all. It is the directors' responsibility to consider if and when they are straying into wrongful trading territory (ie: trading while insolvent), not the bank's.

Obviously, it is in the bank's best interests to minimise its own exposure and you will often see a bank acting pre-emptively to attempt to achieve this (such as, by appointing receivers or administrators). However, the bank has no duty to minimise the loss to the company, its shareholders or other creditors.

Damn damn blast and drat.

Thanks again Paul.