Suky Mann successfully defends another dual Bounce Back Loan disqualification investigation.
Background of the case
Our client faced a top-end disqualification and a compensation order after making two Bounce Back Loan (“BBL”) applications, despite his company being entitled to only one loan.
The challenge
Whilst the facts of this case demonstrated a technical breach of the BBL application criteria, thus justifying disqualification, Suky was tasked with demonstrating that the technical breach did not, in itself, warrant disqualification.
Our client submitted the first application with the company’s primary bankers. An IT issue with the application process meant our client did not receive confirmation that the first application was successful. Having waited over a week and absent receipt of the loan, our client made a second BBL with another banking institution.
Unbeknown to our client, shortly after the second application was submitted and the funds received, the first loan was paid into the company’s bank account. Our client was not even aware that the first BBL had been received into the company’s bank account, and in fact, it was immediately swallowed in large part by the overdraft.
Our approach
Knowledge and intention were at the heart of our client’s defence. Suky demonstrated that, notwithstanding a technical breach of the loan scheme rules, our client did not knowingly make two applications and had no intention to abuse the loan scheme. Our client’s actions post-receipt of the funds, both in terms of attempts to return the second loan and in how the funds were used, were also central to running a successful defence.
In the face of the robust representations put forward by Suky, the Insolvency Service concluded that it was not in the public interest to seek a disqualification against our client.
Client feedback
The client praised Suky for a “a great job in representing and resolving our case. Great outcome” The impact of a disqualification would have been disastrous for our client and immediately impacted his ability to derive a living for his family.
Our thoughts
As we have said many times, appointing a specialist, experienced director disqualification solicitor can make all the difference in successfully challenging investigations like this.
