Bank may refuse BG's

Has anyone had any experience of the bank refusing to pay out on the BG, after the 24 month period.

The whole idea of a bankers guarantee is that if a contract condition has been broken by either party, the bank has to pay out to the other party on proof of a broken condition.

For example, I have dealt with bankers guarantees in the pharmaceutical industry when a supplier of goods has to give a bankers guarantee for the duration of the warranty period. Therefore if the product breaks and the supplier won't fix it OR the supplier goes bust, the company is not left out of pocket with a duff product. The bank pays up. This is the case until the agreed period (warranty) has expired, the originating company then gets the money back from the bank. I was in southern Ireland and suppliers ranged across europe, so I would think ours are controlled by the same ECC conditions...??

So as long as the conditions have been broken, you shouldn't have a problem. The only loss of money would be the deposit as this is not covered by the bankers guarantee.

well, that's how it's supposed to work......

Huma were out of contract with us at the end of July (full 24 month period). I instructed our solicitor to get our money back from Huma. He tried for a couple of months without success, so then executed the bank guarantee in November. We are still waiting. According to the solicitor, the bank speak to Huma who say they will pay, but nothing happens. He then goes back to the bank, who then go back to Huma again. We have been going round in circles for two months!

The latest he has said is that we may have to take legal action which could take a year. It seems the bank guarantees may not be worth the paper they are written on.

I am actually in the process of getting my BG renewed.

After continually reminding Huma that it was due for renewal in December 2006, they failed to send it to me.  As they have done so every year since 2004 (even when they changed from Caja Murcia to CAM bank) I was, as you can imagine, quite concerned.

I called, and was told that I had to send in my original first - when I queried this ( I never had to previously) I was told that CAM wanted it.

I sent a copy of the guarantee in and waited for 2 weeks.  Surprise surprise, nothing came back to me.  When I called Huma, I was told they never received my guarantee.  Of course they didn't.

I refused to deal with them, and took the original into my local branch of CAM, who are renewing it - they have told me it will be ready in 2 weeks maximum.  They didn't want the original, just took a copy of it!  The guy told me that the BG was just like cash (which is how I always thought of it, similiar to a bankers draft)

I have to be honest, I am thinking of walking away - it just really P****** me off to think that they've had my money for 2 years, accruing interest.

Anyone else buy through Millennium?  The Garrucha office has gone, and I am having trouble getting any joy from Millennium UK.

I am sick to death of Huma's shoddy customer service and arrogant attitude, and I am not even sure anymore if I would sell at a reasonable profit (even if the damn place does eventually get built)