business loan illegal

JasX

robin3425 wrote: »

The original question was Were the bank irresponsible, did they breach their own rules and could their actions be said to be legal? My part is an irrelevance

Is there any legal requirement for the banks to be 'responsible'? If they led to people who *cannot* pay the money back the bank suffers a loss and is answerable to its shareholders.

If it lends money to someone with a poorly thought out business plan or even a completly invented business who really cares, what you do with the money is up to you. There are some legal requirements about unfair loan agreements (eg if something dodgy is going on with fees or rates) but there is certainly nothing going to touch the basic premise -> you borrowed the money, you need to pay it back at the interest rate agreed.

Did they break their own rules? Who knows? Who cares tbh? certainly nothing illegal going on in breaking their own internal criteria and definitely nothing that is going to change the 'you have to pay it back' part.

somethingcorporate

How have the bank made loads out of you, you still have an awful lot of their money to pay back from the sounds of things.

robin3425

I joined this forum to see if anyone else shared my experience.
Most of you all seem quite happy to jump to conclusions, have I at any time said that I was looking to wriggle out of paying off the loans? I always have and always will. I thought that there might possibly be someone on this forum who would be able to actually focus on the question.
Looking at the number of posts some of you have made it makes me wonder if you haven't actually got anything better to do.
You all seem to suffer from the same delusion that you have some sort of God given right to make a moral judgement. It's not about what is fair it is about the law and the rules and regulations governing banking as they are. No more, no less.

InsideInsurance

Nothing which you have said to date as suggested they did anything illegal.

Consumer facing documentation is very light weight compared to the behind the scenes operating manuals, corporate policies, control mechanisms etc. Even if someone in the bank did breach these it wouldnt make the loan "illegal" but could be gross missconduct for that employee.

If the regulator found the bank was routinely breaching its own controls then it would have sanctions made against it, normally in the form of being required to hold additional capital to secure against the higher risk they are running and potentially a fine.

Again, this doesn't make the loan illegal or unenforceable

As said, the loan does sound irresponsible but that doesnt make it unenforceable and I suspect that back then if they had declined the loans you would have been on a forum complaining how it was unfair that they werent supporting small business etc.


You havent answered my question about where your accountant was in all this particularly as you are mentioning tax implications which your bank wouldnt have been advising you on.

What are you actually wanting out of all of this other than venting your frustration?

robin3425

Don't give it another thought:


This from the bank's code of practice:
As a responsible lender,
we seek to ensure that we lend to customers
who can afford to repay their borrowing and
to businesses that have a fundamentally
sound business model.

somethingcorporate

If you had such a poor business model why did you continue to seek sources of finance to prop it up?

Sorry you aren't getting the sympathy you hoped for but ultimately however you wrap it up the answer will almost certainly be the same.

somethingcorporate

Why get personal because you don't like the message I have to convey? I've asked very little and made no personal accusations, only asked sensible questions anyone would.

Honestly, if you don't want opinions that disagree with yours you should step away from the internet, you're obviously not old enough to use it yet.

PeacefulWaters

I borrowed stupidly. The bank lent stupidly.

Are the bank silly? (translated: can I get the debt written off?)

Answer: It's your problem regardless of the bank being silly.

Response: Get upset due to not liking the answer.

Is that about it?

BillJones

somethingcorporate wrote: »

How have the bank made loads out of you, you still have an awful lot of their money to pay back from the sounds of things.

It's a constant theme on here, isn't it? "I borrowed money, I reneged on the terms, the evil bank want me to repay them".

We even have, as in this case "Why did they believe my lies, they are at fault".

Very rum.

DaveTheMus

If a consumer goes to a bank and gets stitched up by the bank they have lots of protection because consumers are naive and are easily victimised, they need to be protected.

If a businessman goes to the bank and gets stitched up there is very little protection because a businessman should carry out proper due-diligence and to be honest should have known better.

Whether the bank were irresponsible is irrelevant, they may well have been but it was a relationship between two commercial entities and, as long as no laws were broken, irresponsibility can be the order of the day.

You have no ombudsman to turn to because you are entirely responsible for your decisions, even if the advice you were given was useless and counter-productive.