It was unexpected to be told that the BBC reported we are all seemingly happy with our banks. Some 92% of bank account holders questioned had not changed their banks in the past 2 years and 93% of those people were happy with their service. Merely 7% of people with bank accounts are likely to switch in the next year, suggests the survey of 1,001 adults, of whom 96% had a bank account.
This comes as a revelation when during the last year the major banks have all been given the tax payers money to alleviate their Debt Management crisis. It also comes as an even bigger revelation when the board of the RBS threatened to resign if they didn’t get a bonus.
Thus after the Debt Consolidation help the government kindly gave to these “no help” organisations, could it actually be that we are actually happy with our bank? To reply to this it would be helpful to listen to what small organizations have to inform on the question. How do they feel about their local high street friend? A current account shows that 85% of small organizations have been turned down for credit applications by their local bank.
Now some will consider that this has been for a variety of causes ranging from credit card debt, or a Debt Management plan like a Trust Deed or an IVA. Still the reason reported is that the banks are not funding any new developments within organizations.
Thus, if you are a small business owner and the reply you have had from the organisation you bank with – the one funded by your charges – is ‘no’, would you feel happy about it?
It is also believed that some organizations that have been paying their existing credit agreements have had the banks threatening to pull the lending. If they have been taken away it forces many company owners to go out of business and seek expert help from bankruptcy practitioners to enter an IVA or the Scottish counter part, a Trust Deed.
The effect on the local economy is devastating but the greater pain is suffered by the sad person who once owned that little company. Their ability to acquire credit is tainted even to the point that acquiring a Debt Consolidation loan would be turned down.
Perhaps those interviewed about their local banks might not be company owners and simply ordinary people who get paid a salary and just merely use the bank to access their money. I wonder how they may feel if they had suffered the treatment the banks dish out to business account owners.
We must keep in mind that the Farepack disaster, where people saving for their Christmas hampers and other products were advised they couldn’t get their orders. It was reported well in the media the appaling impact on its customers. Nonetheless when it emerged that it was Farepak’s bank that decided to pull their overdraft facility thus pushing them into receivership, hatred began to boil over our banking sector.
It is hoped that in the future the banks will lend again to people. For now we need to bear the moans about bonuses, the awful compulsion they are under to use all our money. Maybe the banks need to spend a day in the life of common people and see what it’s in fact like to live.
Tags: credit card debt, credit, credit wipe, debt <BR/>
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