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compensation for a loan

Hi, I have made a complaint to the bank about how slow they were at getting a loan agreed for me to buy a business, after many phone calls and 'popping' in to the bank, where they were too busy to discuss it with me 6 weeks went by, and finally the loan was agreed but the business was sold the week before. It made a net profit of 80k. I have now lost my job as i worked for the business. The bank has asked me how much compensation i would like. I have no idea what to ask for.....any ideas?????

The loan was for 35k and was to be payed over 7 years. In the 7 years i would have had the loan the business would be expected to have make £500.000
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Comments

  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    harrock wrote: »
    Hi, I have made a complaint to the bank about how slow they were at getting a loan agreed for me to buy a business, after many phone calls and 'popping' in to the bank, where they were too busy to discuss it with me 6 weeks went by, and finally the loan was agreed but the business was sold the week before. It made a net profit of 80k. I have now lost my job as i worked for the business. The bank has asked me how much compensation i would like. I have no idea what to ask for.....any ideas?????

    The loan was for 35k and was to be payed over 7 years. In the 7 years i would have had the loan the business would be expected to have make £500.000

    How much you ask for and how much they are willing to pay is another matter.

    You'll get close to a grand if you're lucky
  • stephane_2
    stephane_2 Posts: 3,076 Forumite
    I would be the bank I would not give you any compensation whatsoever....why should they...! Unreal.
  • I would agree with above. Might be worth seeing a solicitor a small cost (free sometimes for the first 30 minutes) and see what their view is.
    Don't trust a forum for advice. Get proper paid advice. Any advice given should always be checked
  • DevCoder
    DevCoder Posts: 3,361 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    They can choose who they lend to. They can also dictate their lending criteria and their suitable time period for lending decisions.

    Im with Stephane, the bank could rightfully say they owe you nothing.
  • DevCoder
    DevCoder Posts: 3,361 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    PS : In non retail lending, 6 weeks for a credit decision is not beyond the norm. They need to review your business proposal, then ensure compliance/due diligence are happy, then talk to bank ops or client admin for opening procedures.

    Then theres normally a nbac (new business acceptance committee) convened where all departments voice their approval or dis-approval.

    Even if you had existing business with them then theres an ebac (existing business approval committee) which whilst less stringent still takes time.

    6 weeks for a business loan approval is actually not bad tbh.
  • Tixy
    Tixy Posts: 31,455 Forumite
    They won't compensate you for the lost business opportunity or the potential lost profit from that lost business.
    They may offer a small payment as a goodwill gesture if something internal delayed the loan decision slighlty longer than usual.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • First time poster - first post at 8.25
    No replies to answers given so far - logged in again at 9.14 no reply.

    Has to be a windup doesn't it?

    The bank can take as long as they like - if business was sold before OP was ready - sorry tough!
  • rdwarr
    rdwarr Posts: 6,159 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Photogenic
    I think they'll give you the full £500,000 no problem. But might be safer to ask for 750 so there's a bit of room to haggle.
    Can I help?
  • oldhand
    oldhand Posts: 3,749 Forumite
    Part of the Furniture
    I think he takea da peeeeeeeze.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    harrock wrote: »
    Hi, I have made a complaint to the bank about how slow they were at getting a loan agreed for me to buy a business, after many phone calls and 'popping' in to the bank, where they were too busy to discuss it with me 6 weeks went by, and finally the loan was agreed but the business was sold the week before. It made a net profit of 80k. I have now lost my job as i worked for the business. The bank has asked me how much compensation i would like. I have no idea what to ask for.....any ideas?????

    The loan was for 35k and was to be payed over 7 years. In the 7 years i would have had the loan the business would be expected to have make £500.000

    Why didn't you book an appointment. Did you prepare a business plan?
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