Media stories in the last two weeks will have come as a shock to many people. First there was the story of an estimated £1 billion underpayment in compensation accordingly due to borrowers further to the self bank admission of mis-selling Interest Rate Hedging Products.
Last week it was revealed that the Banks using threatening letters from 'pseudo' solicitor firms to make debtors pay up. Basically this is the process of issuing threatening legal letters from what appear to be solicitor firms are actually coming from a department of the Bank.
These stories, added to a recent admission by a main NI Bank to hiring
Private Investigators, highlights the stress being caused to already anxious
and distressed borrowers. Despite the extreme measures of the tactics being
employed by the Banks, both the use of Private Investigators or letters signed
by solicitors working within the Bank is legal.
What it does serve to highlight is that there has been a total breakdown in
trust between the bank and the borrower, and where there is no trust there can
be no solution obtained to their shared problems.
Banks have had a lot of bad press in the last 6 years, some
of which self inflicted and some of which is not. It is natural for people to
look for someone to blame but the fact remains the Banks have been overwhelmed
by the levels of debt in society and at the end of the day the banks are
required for economic stability, economic growth and access to finance.
In the good times relationship between the banks and the borrowers were
good and nobody had any reason to be paranoid of another. Since the economic
recession and the property crash there has been a real lack of trust between
borrowers and banks.
Our own view is that its companies like ourselves who bridge the gap
between banks and borrowers, in particular were there has been a breakdown in
communication and a loss of trust that was once shared. When feeling the
pressure from the bank, you should have a team of professionals on your side to
help you.
It has turned out a murky old world this bank and debt crisis and it has
ruined many families and SME’s in the last few years. Companies and traditions that have been built
up over generations, wiped out in a flash.
Education though is still key to solving many of the world’s problems,
and working out solutions with your bank, is no different. Informed decisions
are the only way to progress.
Darwin Allen AABRP
Senior Relationship Manager
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