The "Bank of Dave" 5% Savings Interest? .. or not (What is this?)

alanq

chaotic_j wrote: »

I also found out that this is to do with a Channel 4 series "Bank of Dave" http://www.channel4.com/info/press/news/dave-vs-the-banking-giants-channel-4-commissions-new-series

Starts Thu 12 Jul, 9PM
http://www.channel4.com/programmes/bank-of-dave

kidmugsy

Does Dave have a banking licence?

VoucherMan

Went for look out of curiosity last week.

In case anyone's tempted to become a 'lender' there's a waiting list. As of last week it was until September 2013. Not sure how they arrive at the date since it depends on how much is lent to other people.

A copy of some of the paperwork below in case anyone's interested.

Copied using Microsoft Office Document Imaging which lost most of the formatting & quite a lot of spelling/ grammar. I've tried to put it right but may have missed some bits.

VoucherMan

Burnley Savings and Loans
30 Keirby Walk, Burnley, Lancashire BB1 1 2DE
Tel:01282 454744 Fax: 01282 416969
Email: info@burnleysavingsandloans.co.uk
https://www.burnleysavingsandloans.co.uk

Burnley Savings and Loans Limited is not a bank. We do not hold a banking licence and are not regulated by the FSA. We operate an innovative ‘peer to peer’ lending system that does not come under the FSA’s regulations. We are also not covered by the FSCS (Financial Services Compensation Scheme.)

Our innovative peer to peer lending system works like this. We help people who are looking to achieve 5% on their savings by matching them with people looking to borrow money. We handle the administration in between, including background checks into anyone interested in obtaining a loan.

Once we have matched a lender to a borrower, it becomes the borrower’s responsibility to repay the money. Should there be an issue or a default on payments, David Fishwick will take over the responsibility of the repayments, via his 1 00% personal guarantee to the lender.

Burnley Savings and Loans Limited lend out approximately £25,000 per week and as such look to match £25,000 per week. As a result, since launching our peer to peer system in February 201 2, we have been inundated with applications and support. Due to the volume of requests, we currently have a waiting list in place. If you would be interested in joining this list, please contact us directly on 01 282 454744. Our opening hours are 10am to 4pm Monday to Friday.

Please note that all borrowing and lending transactions are entered into at our office in Burnley. Whilst we do offer lending and borrowing opportunities across the UK, we established primarily to assist those in the Burnley or East Lancashire area.

peer to peer lending of the future

BURNLEY SAVINGS AND LOANS (BS & L) FAQS

1. Who is behind BS&L?
BS&L was created and is managed by David Fishwick, a local entrepreneur and businessman. The chief finance officer is David Henshaw, who has 43 years experience in banking and finance. The branch manager is Chris Woods. The assistant branch manager is Rachel Cowan.

2. When was BS&L established?
BS&L officially opened its doors in September 201 1.

3. What is BS&L?
BS&L acts as a link between savers and borrows. It has created and innovative peer-to-peer lending scheme that enables people who have struggled to obtain finance from high street banks to obtain affordable loans and offers 5% aer on repayments of that loan.

4. Is BS&L regulated?
BS&L holds a consumer credit licence with the Office of Fair Trading (Licence No. 646136).
BS&L is not regulated by the Financial Services Authority as its activities do not fall within the regulatory framework.

5. Are there any requirements for borrowing/lending? On application to become a member of our lenders club, you will need to provide us with proof of signature, for example, a driver’s licence or passport, and proof of address, for example, a utility bill, and proof of income, a recent payslip if employed or Bank statement if self employed.

6. How do I signup?
All borrowing and lending transactions are entered into at our office following a face- to-face interview.

7. How does BS&L benefit from providing this service?
BS&L charge an administration fee equal to the difference between the lending rate and the borrowing rate — currently borrowers pay a flat rate of 8.9% (typical 17.4% APR) or a flat rate of 14.9% (typical 29% APR), and lenders receive 5% aer.

8. What happens if BS&L goes out of business?
The loan agreements are between the borrower and the lender, so in the event that BS&L went out of business, these agreements would continue.

9. How can I contact BS&L?
You can visit it at our offices, which are at 30 Keirby Walk, Burnley BB11 2DE. Alternatively, you can contact us via e-mail on info@burnleysavingsandloans.co.uk, by phone on 01282 454744 or by fax on 01282 416969.

Lending

Question 1 You can become a member of the BS&L Lending Club.
This works via the peer-to-peer certificate document.

Question 2 How much can I lend?
You can lend between £50 and £15,000.

Question 3 How long can I lend the money for?
There is no maximum term, however, amounts between £50 and £1 ,000 are subject to the first day notice period and amounts between £1 001 and £15,000 are subject to a twelve month minimum period.

Question 4 What returns can I expect?
5% aer.

Question 5 How do I lend my money?
Following a face-to-face interview at our offices you will enter into an agreement with BS&L relating to the membership of the BS&L Lending circle on our standard terms and conditions. This will include details of the amount of money you want to lend and the term over which you would like to lend it. We will then match you with a suitable member of our Borrowers’ Club.

Question 6 Will I know who borrows my money? No.

Question 7 How long will it take to lend my money out? There is a waiting list. Please contact our office for the first available date.

Question 8 Once my money has been lent out, when can I get it back?
If you lent between £50 and £1, 000, you need to gives us 30 days’ notice. If you lent between £1, 001 and £1 5,000, you need to give us twelve months’ notice. We will be flexible if we can be but it depends on the maturity of borrowers’ loans at any given time.

Question 9 Do I have to pay for you to lend?
What you pay is the difference between the lending and borrowing rates.

Question 10 Where is my money held?
Until it is lent out we put your money in a bank account in BS&L’s name with HSBC. This is a normal business clients current account.

Question 11 How safe is my money?
The principal of all loans are personally guaranteed by David Fishwick so if your borrower defaults BS&L can recover from the borrower but David will personally ensure you get your money back.

Question 12 What happens if a borrower misses a repayment? We have an arrears procedure in place and if unresolved will be passed to a debt collection & recovery company for collection.

Question 13 What happens if a payment is late? There is no effect on you.

Question 14 What happens in the event of the borrower’s death?
The loan agreement still stands. Once BS&L have received a confirmation of the borrower’s death and a certified copy of the death certificate, we will give the details of the loan and a settlement fee to the Executor of the borrower’s estate. The debt then becomes part of the estate and payable by it.

Question 15 What happens in the event that I die?
We will continue to recover repayments and interest earned until we receive a certified copy of the Grant of Probate/Letters of Administrations and await instructions from the appointed personal representatives. Loan Agreements remain in place and all funds would accrue to your estate and be distributed as instructed by the personal representative in accordance with your Will.

Question 16 Do I have to pay tax on the money I earn?
Returns from lending through BS&L are paid without any tax being deducted. You should declare any interest on gains to HMRC on a self-assessment tax form or inform your local Tax Office.

Question 17 Can a borrower repay early?
Yes, the borrower is entitled to repay the loan in part or full prior to the stated repayment date. However, the borrower will have to pay a settlement figure based on an actuarial calculation.

Borrowing
Question 1 How much can I borrow? Personal loan — minimum £100, maximum £1000. Hire purchase — minimum £1000, maximum £7500.

Question 2 How long can I borrow it for? Personal loan — maximum 3 years. Hire purchase — maximum 4 years.

Question 3 Can I repay my loan early?
Yes, you can repay your loan in part or full early. The settlement figure will be calculated on an actuarial basis and you will receive a rebate of interest dependant on the date the loan is settled in full.

Question 4 What rate can I expect to pay?
Loans are offered with competitive rates of interest from 8.9% flat (typical 17.4% apr) to 14.9% flat (typical 29% apr) depending on credit status.

Question 5 I have a bad credit history, can I still become a member of the BS&L borrowing circle? Yes. We will need to understand how you will repay the loan. Not repaying the loan means we cannot help others like you.

Question 6 How is the apr calculated?
APR stands for annual percentage rate. It takes into account the interest and charges payable on a loan and so shows the actual cost of the loan.

Question 7 How are repayments calculated?
The interest is calculated on a fixed rate per annum, either 8.9% flat rate per year (typical APR 17.4%), or 14.9% flat rate per year (typical APR 29%).

Question 8 Will lenders be given any personal information about me? Not unless you agree in writing.

Question 9 What happens if I am having financial difficulties and cannot pay?
If you are worried that you will be unable to make a repayment you must contact us immediately and inform us of the steps of only being taken to remedy the situation. We will try to work out a plan with you to enable you to afford the repayments.

Question 10 What happens if I die?
The loan agreement will still stand. We will continue to recover repayments and interest earned until we receive a certified copy of the Grant of Probate/Letters of Administrations and await instructions from the appointed personal representatives. Loan Agreements remain in place and all funds would accrue to your estate and be distributed as instructed by the personal representative in accordance with your Will.

Question 11 What happens if the lender dies?
The loan agreement still stands. Once BS&L have received a confirmation of the borrower’s death and a certified copy of the death certificate, we will give the details of the loan and a settlement fee to the Executor of the borrower’s estate. The debt then becomes part of the estate and payable by it.

Question 12 When will my repayments start?
Your repayments will usually start one month after the loan is taken out.

Question 13 Do you credit score?
No, we manually underwrite every application. You obtain a decision from a person, not a computer.








The content of this document and any promotion it contains or refers top has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.

THIS DOCUMENT IS IMPORTANT. IF YOU ARE IN ANY DOUBT IN RELATION TO THE CONTENTS OF THIS DOCUMENT OR WHAT TO DO IN RELATION TO THEM, YOU SHOULD CONSULT WITH AN APPROPRIATELY QUALIFIED INDEPENDENT PROFESSIONAL, SUCH AS AN ACCOUNTANT, SOLICITOR OR STOCKBROKER WHO IS APPROPRIATELY AUTHORISED AND REGULATED.

The directors of the Company have not limited their liability with respect to the form and content of this the statements made to lenders in this document or in relation to monies lent by the lender.

Any person who is in any doubt about the investment to which this document relates should consult an authorised person specialising and advising on investments of the kind in question.

The directors of the Company have taken all reasonable care to ensure that any person belonging to the common interest group of the Company (or their professional advisers) have access and can have access at all reasonable times to all information that he or they would reasonably require and reasonably expect to find for the purpose of making an informed assessment of the assets and liabilities, financial position, profits and losses and prospects of the Company, and of the rights attaching to the lending done by the lender via the Company, which are contained in this document, any accompanying documents and certificates, and which are available on request from the directors.

Any person considering making a peer to peer lending transaction with or via ourselves should regard any such transaction as made primarily to assist the furtherance of the Company’s objectives and the charities it supports and only secondarily, if at all, as an investment.

This document is directed only at selected persons who are members of the Company’s common interest group, who have requested information relating to the Company, and who form a common interest group in respect of the Company and no other person can or will be allowed to participate in any investment directed via the Company. The information made available must not be acted upon by any persons who are not members of the Company’s common interest group, and no person who has not acknowledged their membership of this group formally in accordance with the Company’s access conditions shall be allowed to participate. Any money transmitted by any such person will be returned by cheque without interest to the sender.

The Company has put into place systems and procedures to prevent recipients other than members of the Company’s common interest group engaging in the investment activity to which this document relates.

The communication to which this investment relates is exempt from the general restriction in Section 21 of the Financial Services and Markets Act 2000 on making financial promotions to members of the public where the promoter is not an authorised and regulated person for the purposes of the Financial Services and Markets Act 2000 on the basis that it is made to and only to certain groups who are exempt within the meaning of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. These include sophisticated investors, self-certified sophisticated investors, high net worth companies, certified high net worth individuals, certain investment professionals, and members of the common interest group of the Company.

This memorandum is not being distributed to persons outside the UK. However, any recipient of this information memorandum in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This memorandum does not constitute an offer to sell or an invitation to purchase or engage in investment activities in any jurisdiction.

All enquiries relating to this memorandum or to a possible transaction involving peer to peer lending with the assistance of the Company should be directed to one of the following:
Contacts:
Name:
Address:
Tel:
Fax:

Financial Services Compensation Scheme
Lenders will not be able to Claim under the Financial Services Compensation Scheme established by the Financial Services Authority in the event that the Company fails.


(Members Form)
To: Burnley Savings and Loans Ltd
30 Keirby Walk
Burnley
Lancashire
BB11 2DE

Dear Sirs
Peer to peer lending

I confirm that I have an interest in your peer to peer lending system and operation. I wish to be regarded as a member of your common interest group within the meaning of Article 52 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.

I confirm that the requirements Article 52, a copy of which is attached to this letter, have been complied with as regards me and the relevant required risk warnings have been run through with me. I still wish to proceed and I still wish to become a member of the common interest group of Burnley Savings and Loans Limited and to receive information which may potentially lead to me engaging in a peer to peer lend to a third party borrower using the assistance of Burnley Savings and Loans Limited.

Yours faithfully

Enc.

Biggles

I see he's still suggesting 5%. For the additional risk involved, you'd want quite a bit more than that, which is what all the other peer-to-peer (and peer-to-business) sites are able to offer.

I saw a small part of the programme and he came across as either a wide boy or an innocent abroad. I still think he's in fairyland, I wouldn't touch it with a bargepole.

innovate

Biggles wrote: »

he came across as either a wide boy or an innocent abroad. I still think he's in fairyland, I wouldn't touch it with a bargepole.

Agree.

Wouldn't be surprised if he made more money from his TV appearance than he will make from the actual venture.

flashg67

It's easy to be cynical as to his motives, but I'm inclined to believe he has a genuine affection for his hometown (sponsors a stand at Turf Moor) and wants to help the townsfolk. Did you not see him give his profits to local charities? Yes he's a bit gobby and perhaps naive in taking on the big boys, but I think his heart's in the right place.

I'd even suggest some of the negative comments are from Southerners who wouldn't even talk to a stranger let alone help them without a benefit to their own personal agenda.....

VoucherMan

As a southerner now living up north (for most of my life) I can assure you not all southerners are like that.

I fully intend to put my name down the next time I'm passing. It'll be an estimated 14 months or so before I'd have to part with any money so plenty of time to reconsider. It's hardly a retirement scheme anyway with a maximum 'investment' of £15,000. More of a finger pointing gesture towards the banks, though I doubt they're bothered in the slightest.

The interest rate's not that good anyway. 5% and taxable ('well that's up to you' was hinted at when I asked). I'm getting more than that with my current ISA so it would be just a 'helping out in the community' exercise for me.

I certainly hope it succeeds. When I wandered through the town it looked to be busier than any of the banks I passed. So certainly still generating plenty of interest.

Archergirl

I liked what I saw of Dave on the telly and I hope he does well, he seems a genuine guy to me.

Biggles

flashg67 wrote: »

It's easy to be cynical as to his motives, but I'm inclined to believe he has a genuine affection for his hometown

To me, his motives aren't the issue. My point was that 5% is a very poor return for a risky investment.