It was extraordinary to be informed that the BBC reported we are all apparently content with our banks. Some 92% of bank account holders questioned had not changed their banks in the past two years and 93% of those people were content with their service. Merely 7% of people with bank accounts are likely to switch in the comming 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 emergency. It also comes as an still bigger revelation when the board of the RBS threatened to resign if they didn’t get a bonus.
So after the Debt Consolidation aid the government kindly gave to these “no help” organisations, could it in actual fact be that we are truly content with our bank? To reply to this it would be helpful to find out what small organisations have to inform on the issue. How do they feel about their local high street friend? A current article shows that 85% of small organisations have been turned down for credit applications by their local bank.
Now some may possibly believe that this has been for a variety of causes ranging from credit card debt, or a Debt Management plan such as a Trust Deed or an IVA. Nonetheless the reason reported is that the banks are not funding any new developments within organisations.
So, if you are a small enterprise owner and the response you have had from the organisation you bank with – the one funded by your charges – is ‘no’, would you feel content about it?
It’s also understood that lots of organisations that have been paying their present 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 obtain expert aid from liquidation practitioners to enter an IVA or the Scottish counter part, a Trust Deed.
The bearing on the local economy is devastating but the greater pain is suffered by the depressed person who once owned that little company. Their ability to get credit is tainted maybe to the point that obtaining a Debt Consolidation loan might be turned down.
Perhaps those interviewed about their local banks might not be company owners and only regular people who get paid a salary and just merely use the bank to access their money. I wonder how they would feel if they had suffered the treatment the banks dish out to business account owners.
We must bear in mind that the Farepack disaster, where people saving for their Christmas hampers and other treats were told they couldn’t get their orders. It was reported well in the media the terrible effect on its customers. Though when it came out that it was Farepak’s bank that decided to pull their overdraft facility thus pushing them into receivership, hatred started to boil over our banking sector.
It’s expected that in the future the banks may possibly lend again to people. For now we must tolerate the moans about bonuses, the awful stress they are under to use up all our money. Possibly the banks could spend a day in the life of normal people and see what its actually like to live.
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