A company Director has had their Bounce Back Loan turnover complaint dismissed by the Financial Ombudsman Service.
Case reference DRN-3468208 was about a Director who complained that TSB Bank Plc had demanded repayment of the Bounce Back Loan immediately upon discovery that the company concerned did not have sufficient turnover to merit a Bounce Back Loan of £35,000.
The complaint was that the company was left without banking facilities and thereby unable to trade.
The matter centered around the requirement that a party applying for a Bounce Back Loan needed to have turnover at four times the level of the loan taken out.
There were various rules of the Bounce Back Loan Scheme but a key one in addition to the requirement that the money was to be used for the economic benefit of the business and not for personal purposes was that in the calendar year 2019 the business turnover needed to be four times the level of the loan. However, there was an exception because if a business was not trading by 1 January 2019, then and only then, could you calculate your turnover on the basis of what you estimated it to be from the date that you started trading.
The application for the Bounce Back Loan in this case calculated turnover on the basis of an estimated figure. This was not permitted because the business had been trading for some years.
The Director who complained about TSB Bank Plc said he made a genuine mistake and wanted a chance to explain this and to attempt to resolve matters.
The Financial Ombudsman Service said there was no obligation on the bank to do so and the complaint was therefore not upheld.
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