Home > Uncategorized > How dare they? Yet again its a major bank

How dare they? Yet again its a major bank

I have a policy of not directly naming lenders who have acting in a what i would consider an unethical manner. It is tempting but also risky on a number of levels. However there is often sufficient signposting within my writing to identify the culprits. Treat it as a puzzle maybe.

In this particular case a major bank has for some time offered invoice financing arrangements with one months notice periods. This was attractive in a market place where most agreements are a tiresome 90 days and some are a dreadful 180.

Last year this bank wrote to its clients advsing them that they had unilateraly altered the terms to 90 days notice. This is without agreement or negotiation.

I believe I am on safe ground when I state that this would not stand up for a second if challenged legally. You simply cannot change a fundamental term after the agreement has been signed. Its akin to changing the agreed price and demanding settlement

This has already been presented to a client of mine intending to leave this bailed out bank. The moment he pushed back they caved in which tells you all you need to know

Quite frankly this is seedy and tacky behaviour. The bank conerned should be ashamed of themselves and whoever suggested this should be re-employed in something more suitable. Preferably a million miles away from dealing with the engine rooms of our economy, namely the SMEs

This particular bank is very keen for new business. Any broker who puts his client first is not going to seek lenders who take the opposite view and frankly cannot be trusted with a contract

 

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