Independent Banking Advisory Service
Established in 1992
Banking News & UK Comment 2014
Bank Culture Reforms 'Will Take A Generation' - A report finds UK banks still have much to do to restore trust following a series of scandals including the mis-selling of PPI. It identified a total of £38.5bn in fines and redress paid by banks as a result of retail bank failures - the majority blamed on the mis-selling of payment protection insurance (PPI). Banks were found to have received 20.8 million complaints since the financial crisis. The report said: "Given the current rate of change, a radical overhaul will take a generation."An entire generation of staff have been raised, and some instances promoted, in an aggressive sales culture”. - 26th November 2014 Sky Business News
Eddy Weatherill comments: "Banks were allowed to rip off customers using 'get rich quick schemes' by successive governments over a long time. Only now is this Government prepared to make banks pay for bringing the country to it's knees and it's going to be a long haul to correct such gross negligence over at least 25 years by previous governments. The FOS was born originally as the Banking Ombudsman in 1986 because of the large number of complaints against banks. Banks took the incentive offered by Government to pay for the Banking Ombudsman to prevent legislation. But, proper Banking Regulation and Supervision has been a long time in coming and again it is only recently that the FCA started to 'drive back the tide' of banking excesses. But, will UK bank customers be able to trust the banks that created this mess - ever again? That is the question."
RBS 'wanted critic's mortgage back' - A businessman who wrote a government report that criticised RBS has been told he can no longer remain a customer of the bank, Panorama has learned. In the 2013 report he accused RBS of systematically wrecking viable businesses. And in 2014, RBS deputy chief executive told him he would have to take his mortgage, business and personal accounts to another bank. The bank eventually backed down over the mortgage on his home but he had to find new bankers for his business, which employs more than 2,000 people. Lloyds has also been accused of adding additional fees and interest when struggling companies are moved to its Business Support Unit. Lloyds customer said the Business Support Unit had been anything but supportive and his hotel business had been charged an extra £298,000 in one year after being transferred to it. - By Andy Verity BBC Panorama 24th November 2014
Eddy Weatherill comments: 'The Panorama programme showed just why banks cannot be trusted by UK businesses. Also, why the big banks need to be broken up quickly. UK Businesses need 'support', but not the type of 'support' demonstrated by the banks in this programme. Support is rarely provided by any bank specialist recovery unit but to deliberately miss represent the bank's plundering of UK businesses as being a form of bank 'business support' or as 'specialist business support units' is yet another blatant and deliberate invention by big banks to distort what they are really doing. What Panorama illustrated is that the banks were deliberately plundering businesses which were seeking (and were promised) 'bank support' with higher and more questionable charges and fees and then selling off or just 'taking' entrepreneur's businesses and their assets for themselves.'
Tesco customers to be paid £43m after blunder by firm's banking arm - Online Tesco Bank admitted it breached industry rules and is handing back interest and charges to 175,000 loan and credit card customers for the period the statements were delayed. Watchdogs praised the compensation decision. Eddy Weatherill of the Independent Banking Advisory Service said: “Tesco have held their hands up. For that I applaud them and I applaud them even more for compensating customers. “The big four banks would have waited for the regulators to intervene.” - 1st November 2014 - Mirror Money - City News
Eddy Weatherill further comments: 'Tesco as a new entrant to the banking marketplace made a mistake but owned up to it and dealt with it - so that customers did not lose out. That is not only refreshing but also a big lesson for the major banks, who still have not learnt that without their customers they are nothing and that good PR can be obtained if they act honestly.'
NAB bank flags Clydesdale and Yorkshire sale in UK exit - Chief executive said: "We have an intention to exit the UK... What we are signalling is that's our intent, it is an absolute priority." Together, Clydesdale Bank and Yorkshire Bank have more than 320 branches. Earlier this year NAB announced a plan to close around 30 branches and invest £45m in its UK business. - 30th October 2014 BBC News Business
Eddy Weatherill comments: ''This bank took on property debts from other banks without knowing the full extent of their lending in that sector. When they found out how badly they had got it wrong they reneged on the customer's agreements any way they could - leaving many thousand with property portfolios and in a desperate position. This bank then sat on that situation, provided the customer with no direction and no real support with debts they could neither move or pay off. Not a glorious period for this bank or the regulators who allowed such excess without the bank having proper banking systems or supervision to control such excesses. No wonder bank customers do not trust banks or the banking system. This bank's customers are now left with a very unpleasant 'after taste' - having not only been dumped but also being dumped into very deep waters by this bank - simply because they banked on and with Clydesdale or the Yorkshire Bank. Shame on the regulators too for allowing the bank to build up property debt portfolios then exit so easily whilst providing customers with no life lines to cling to! These customers were with the wrong bank in the wrong sector at the wrong time. A phenomenon seen in the last recession which also bankrupted so many. But, back in the early 1990s we had no real banking regulator - did we? We have the FCA now - but what were the FSA doing when this bank got it so badly wrong? and why should this bank's customers be left to pay for such a shabby mess?' - 31.10.14
Crooks posing as banks set to trick millions out of their savings & Millions of customers vulnerable to fraud, warn banks The UK's High Street banks are warning that millions of account holders are vulnerable to fraud - online or over the phone. With help from the police, the banks have now launched campaign to make customers more aware of the threat. They have published a list of eight things that a bank will never ask account holders to do. The list includes asking for a full Pin or a banking password over the phone, or via email. "Being defrauded is a devastating experience for anyone, which is why we are launching this campaign," said the chief executive of the British Bankers Association (BBA). - 14.10.14
Eddy Weatherill comments: "We have noticed the growing trend of virulent email 'packages' and 'phishing' mails which alone evidence a large scale 'activity' by very organized criminals attempting to obtain access to individuals personal and bank card account/s and banking information. Fraudsters now use all available methods of communication and are ably assisted by the naivety of individuals. Posting personal information on face book and other social media platforms allows access for many collecting personal information for others to use. By sending computer messages/texts and accessing 'smart' devices by app infiltration criminals gain control of financial information for their use. In my opinion the public is now much more at risk from large scale financial frauds than at anytime in the last 20 years. It requires much more than one 'campaign' of awareness to protect the many vulnerable people - although this campaign is a start." - 14.10.14
"The FCA publishing complaints and breakdowns allows banking customers to see how their bank is doing on complaint solving and what sort of complaints are being dealt with and how. Many of the major banks are still 'resisting' complaints and still 'shaving down' legitimate compensation claims where they can 'get away with it'. They know the FCA cannot watch everything they do. That is evident from what the FCA has so far published. Major UK banks still have a major 'problem' with image and management perception of what is still required from the banking industry to correct the lack of customer trust in their banks." - 13.10.14
Watchdogs Pursue 'Debt Letter' Tactics Regulators for the City and solicitors confirm they are examining a widespread tactic to pursue debts owed to banks and utilities. The City watchdog has urged people to send it copies of letters from debt recovery companies purporting to be working on behalf of high street names. The Financial Conduct Authority's request comes amid reports that some banks and utility companies have sent 'bullying letters' to those in arrears over payments. The letters may appear to be written by outside debt agencies, with only a passing mention of an in-house connection between debt collector and creditor. The City regulator told Sky News: "The FCA is unable to comment on the activities of individual firms, but we are aware of these reports. "We would request that anybody who has further information about this type of practice passes it onto the FCA." The Solicitors' Regulation Authority (SRA) said it was investigating a number of complaints that have given it "cause for concern".
SRA executive director said: "We will shortly be issuing guidance for in-house solicitors on our existing requirement that publicity must not be misleading. "This will make it clear that they cannot use forms of words that give the impression that they are an independent law firm and not employed solicitors."
Eddy Weatherill comments: "The tactic of using what appears to be an 'outside legal firm' for bank debt collection is very old indeed. The FCA should have been aware of it prior to the Wonga 'debate'. The fact that they were not and have previously not restricted such 'unfair' and deceptive practices provides the evidence of just how far removed from reality the FCA actually is at present. It also shows how much work they need to do to 'catch up' on banker's deceptions. In my opinion, this is yet another example of banker's lack of honesty and integrity. FCA - Please Note: The FCA states that: The Principles are a general statement of the fundamental obligations of firms under the regulatory system
FCA Handbook 'Breaching a Principle makes a firm liable to disciplinary sanctions. In determining whether a Principle has been breached it is necessary to look to the standard of conduct required 1.1.7 FCA PRA by the Principle in question. Under each of the Principles the onus will be on the appropriate regulator to show that a firm has been at fault in some way. What constitutes "fault" varies between different Principles. Under Principle 1 (Integrity), for example, the appropriate regulator would need to demonstrate a lack of integrity in the conduct of a firm's business.' Dear FCA, Banks collecting debts and putting pressure on those in debt by posing as someone else under a different name - is that enough of a demonstration for you?" - 7th July 2014.
PPI: Compensation payouts could have £1bn shortfall - Some leading banks may have underpaid compensation certain customers are due for mis-sold Payment Protection Insurance, the BBC has learned. One expert, commissioned by the BBC, estimates it could amount to "somewhere in the region of £1bn". The customers potentially affected had PPI on credit cards issued by Lloyds Banking Group, Barclays, MBNA and Capital One.
Principal Ombudsman told the BBC that under the rules, there is no doubt fees and charges triggered by mis-sold PPI premiums have to be refunded to customers. "If a fee is the result of the mis-sold PPI, it should be given back, and if it's not included, that would be a mistake," she said that credit card customers who suspect their fees and charges were left out of their compensation calculations should go back to their banks to ask what happened. "If you're not satisfied with the answer, bring it to the ombudsman and we can see what we can do." FOS has handled about a million PPI compensation cases, with some 400,000 more still in the pipeline. Last year, FOS took on 1,000 new staff to help deal with that backlog. That caseload is now likely to grow. But the Financial Conduct Authority should take the initiative and instructs banks that "charges and the interest on them should be repaid to each and every customer in each and every case" – 5th June 2014 - .BBC News & Business.
Eddy Weatherill comments: " The banks cheated many of their customers by imposing PPI on them and are continuing to cheat them on PPI compensation payouts (as we said they would when we said: "We can see this bill for compensation growing by the minute as banks attempt to reduce their exposure to PPI claims by fair means or foul - you decide which - would you trust them to be fair?" - 11 June 2013). Of course we do not anticipate that banks will start being fair - they got away with cheating customers a long time ago and then just continued - because they could.
Where cheating is concerned banks are predictable and the FCA should by now be able to 'pick up on it' very quickly and penalize accordingly - also very quickly - but they do not - and have not. We support this statement. We agree that the FCA should and we believe must instructs banks that "charges and the interest on them should be repaid to each and every customer in each and every case" because the FCA must lead from the front. That should be even more important where the bank strategy is to continue cheating their customers. Unfortunately, the FOS is not the force it should be on PPI and relying on the FOS does not make sure customers are properly compensated. That is because the FOS is too accepting of what they are told by banks and when the bank says they cannot provide information ( which should be a warning sign to the FOS that the bank does not want to show or share that information) they just accept it. Most claims companies will work much harder for their ' percentage' in 'chasing' the compensation. Therefore, using the FOS (whilst cheap) may mean you 'lose' part of your claim because the FOS cannot properly investigate your claim if they do not obtain all the information necessary to properly investigate all the issues. Plus, banks know how the FOS works and from experience know the FOS is a 'soft touch' and will take an easy option/s when offered them.
'trust in the current banking system has been dramatically corroded.' and that: 'Businesses are not ignorant of this (i.e. that there is no discernible change in the banking market place to prevent 2018 becoming the next 2008) so trepidation will remain and growth will continued to be stifled until we see real change in the banking market. This requires breaking up the big banks to make sure we have a varied and responsive banking landscape that can fulfil business needs, be more accountable and demonstrate sustainability and stability for the long term'.
Eddy Weatherill says: The challenge for Government is to not only break up the big banks so that they can never again inflict so much damage on the UK - but also (and at the same time) create a better alternative structure and strategy, which can then allow UK businesses and entrepreneurs proper opportunity to start a business with confidence, grow it, function and prosper – all so they will provide a better and more sound future which can benefit us all.
Meanwhile RBS buries West Register : “However, RBS acknowledge there was a damaging perception that the bank had a conflict of interest when it purchased a property as part of a restructuring process,'
Eddy Weatherill says: 'This is not a small or trivial matter, The 13 subsidiaries that made up West Register controlled rights and bad loans of a 1300 strong residential portfolio with assets worth £1.17billion at end of last year. Many businesses were bankrupted to enable the bank to divert those assets for the bank to 'sit on'' for later use'.
RBS accused of diversion over malpractice report Bank accused of misdirecting attention from lawyer's true findings. RBS has been accused of using diversionary tactics said an adviser to the Business Secretary after a report into accusations of malpractice by the bank. The RBS report, conducted by lawyers, corroborates many of his findings about the bank's Global Restructuring Group (GRG), which is accused of deliberately undermining viable client companies. - Sunday 20 April 2014 Herald Scotland
Eddy Weatherill says: The 'damaging perception' of the RBS conflicts of interest is not a matter which has been removed, even though the bank has made a PR exercise out of the report in response to allegations/report. The report was written after 'investigating' just (a 'selective') 100 GRG cases – IMHO it was not ever seeking to find 'evidence' of wrongdoing by the bank. Does anyone really believe that was the intention? Seems more likely, (and of course we are very cynical where the UK banking industry is concerned), that the lawyer was required by the bank to get a speedy report out to attempt to defuse the situation and lead the FCA 'by the nose'. How nice it would be, if the UK public had the huge resources available to them to do the same in reverse!
What is most worrying is that this bank (along with all other banks) still believe the UK public is stupid enough to believe in a report paid for by the bank, or view it as anything other than a 'whitewash' for the bank's benefit (which is still the 'norm' in such cases where banks attempt to devalue criticism). Banks are still apparently in a period of denial and non acceptance of their own transgressions.
Fortunately, the FCA has still to offer any response to it's own investigation into these allegations and his report. One hopes the FCA will not just look at the same 'selective' 100 cases and that their report will conclude matters by levying a very large fine on RBS for 'trashing' so many entrepreneurs, their families and their businesses and by the bank profiteering from their actions at the same time. There can be no double standards now where bank integrity is concerned and it is time for the real 'clean up' of UK banking to commence. - 3rd May 2014
Lloyds stake sale raises £4.2bn The government has sold a second block of its shares in Lloyds Banking Group overnight raising £4.2bn.Lloyds shares fell almost 5% on Wednesday, falling to below 75.5p, the price at which the 7.8% block was sold. The sale cuts the government's holding in the bank to 24.9%, down from an original 39%. The price remains above the average 73.6p a share the government paid to rescue the bank in the autumn of 2008. The sale price is only 0.5p a share more than the price achieved in September when it sold a 6% stake raising £3.2bn.The chancellor said the sale was "good value" for the taxpayer, and the money would be used to cut the national debt. "It is another step in repairing the banks, in reducing our national debt and in getting the taxpayer's money back," George Osborne said. - 26th March 2014 - BBC Business News
Eddy Weatherill said: "Reducing the national debt from the sale of LTSB's shares is good because the National Debt increased dramatically due to the financial problems created by the banks and also for UK Business Bank customers and bank consumers. We require a much higher profit from the sale of the remaining 24.9% of Lloyds shares to 'put the UK back into the same position' prior to the bank bailouts. So, in my opinion not enough has been received as redress from the banks. As for 'another step in repairing the banks' - in my opinion that comment was highly optimistic but also premature seen against the very poor press still being generated from the very underhand and cheating methods used by those very same banks. Until banks stop cheating their customers nothing can change or be properly 'repaired'. "
Lloyds accused of short-changing PPI claimants Lloyds Banking Group has been cutting the compensation it pays to payment protection insurance (PPI) claimants, a BBC investigation has revealed. PPI expert told the BBC Lloyds had saved more than £60m over the past year by cutting compensation. Lloyds refused to be interviewed on the issue. - 25th March 2014 BBC Business News
Eddy Weatherill said: "No surprises, LTSB lead the banking 'pack' in 'poor press' on issues of fairness and transparency for customers. Some would call it cheating and certainly lacking integrity - contrary to the 'Principles'? - LTSB total PPI mis-selling bill has already reached £9.8bn, three times more than bailout rival RBS (see Insurance mis-selling continues to haunt the taxpayer-backed bank, with a total bill provision now reaching almost £10bn. I wonder what the FCA is doing about this further revelation of the bank cheating it's customers?"
US regulator sues 16 banks for alleged Libor rigging - Sued banks include Barclays, HSBC, Citigroup and Royal Bank of Scotland. Other banks named in the lawsuit include Bank of America, JPMorgan Chase, Deutsche Bank, Lloyds Bank, Credit Suisse, UBS, and Rabobank. The British Bankers' Association (BBA) has also been sued by the regulator - the US Federal Deposit Insurance Corporation (FDIC). "BBA participated in the alleged scheme to protect the revenue stream it generated from selling Libor licenses and to appease the Panel Bank Defendants that were members of the BBA," it was quoted as saying by the AFP news agency. The FDIC alleged that the banks mentioned in its lawsuit rigged the rate from August 2007 to at least mid-2011. - 14th March 2014 BBC Business News
Eddy Weatherill said: "The scale of rate rigging and the length to which banks and their 'helpers' will go to cheat the system for their own benefit should concern us all. But, each phase of banking 'revelation' appears to evidence a culture which is so intent on cheating, that it is almost beyond redemption."
£75 trillion payment systems industry to have new regulator - Every year these payment systems process over 7 billion transactions, worth over £75 trillion. FCA chief executive, said:“This sector is critical to the economy so it must reflect the needs of people and firms and enjoy their confidence. “We need to know if the sector is as open as it should be to new entrants into the market and whether consumers are getting the best possible deal.”
The largest payment systems are owned and managed by the big banks, but concerns have been raised that the sector lacks transparency and innovation.
The FCA’s ‘call for inputs’ will help shape the focus of the new regulator’s work. Responses should be sent to email@example.com by 15 April 2014. - FCA Press Release - 5th March 2014
Eddy Weatherill said: The objectives: 'that it also needs to be easier for challenger banks to access these systems and compete with the bigger players' - 'to promote effective competition in the interests of consumers' is well overdue, probably 13 years overdue, since Cruickshank's report in 2000, when he said the bank already had a monopoly in that area. See 'Competition in payment systems' where: 'The Cruickshank report found serious competition problems and inefficiencies in the market for the provision of payment services. In his 2000 Budget Speech the Chancellor announced his intention to legislate to open up access to payment systems and to oversee access charges. A consultation document "Competition in Payment Systems" setting out the Government's proposals was issued in December 2000. Revised proposals, taking account of comments received during consultation were published in August 2001.'
'So, do not delay, if you have issues/high costs imposed on your business by non competitive bank payment systems - have your say now and send to firstname.lastname@example.org by 15 April 2014'
RBS Seeks Trust As Six-Year Losses Top £46bn - The bank confirmed new cost savings of £5bn over the next four years - reported earlier by Sky New - with its focus shifting back to the UK and further away from investment banking. It was its investment arm that accounted for most of its bonus pool for 2013, which had shrunk by 15% to £576m, though the scene was set for further reductions in later years as RBS said it would concentrate on serving personal and business customers. The Business Secretary said of it: "I am pleased by the overall direction of travel of RBS, getting away from the disastrous obsession with scale and risky casino banking, focusing instead on British customers and British business. "But British taxpayers are still paying for the terrible mistakes of the past and I see no sign yet of a turnaround in the continuing decline of net lending to small business.' - 27th February 2014 - Sky Business News
Supermarkets and banks: Can supermarkets steal more of big banking's business? Tesco Bank has been independent, although under different names since 2008. Sainsbury's Bank has recently split from a joint venture with Lloyds. Originally, supermarkets entered the sector by signing up with the big banks.That is still the case for M&S Bank, which although being the only one to offer a current account, is wholly owned by HSBC. The shift has come from Tesco, the UK's largest supermarket chain, which was once in a joint venture with RBS. Since 2008, it has gone it alone, and now has a fully branded Tesco Bank based in Edinburgh. While it has just opened its seven millionth customer account, it is far smaller than the High Street banks. Sainsbury's has just done something similar, cutting its links with Lloyds Banking Group. All of them offer a range of financial products, such as credit cards, a host of insurance policies for homes, pets and cars, and travel money.
Royal Bank of Scotland investigators appointed by City watchdog. Financial Conduct Authority names two outside firms to report on allegations RBS drove small businesses into administration. RBS's head of regulation said: "We welcome confirmation of the FCA's review and will support the process in every way we can. The full investigation of these issues is vital in order to protect the trust our customers place in us." RBS has already commissioned a City law firm, to review the allegations. He said any customer who is unhappy about the global restructuring group should contact the lawyers involved. - 17th January 2014 The Guardian
Eddy Weatherill says: "Have I got enough room for the comments I would like to make? No, just not enough room to say what needs to be said. But, by publishing his report on RBS and GRG and what this bank has done and also their motivation for doing it was a good start. However, whilst RBS are a very good target and have manipulated businesses into defaults, they are not alone in destroying business in the UK. All banks have done it and for the same reasons - self interest, profit and greed. Nothing wrong with a good profit for a good service. But, UK businesses require much better service and much more intelligence from those who fund them. Also, RBS is being somewhat devious by suggesting all those 'unhappy about the global restructuring group should contact the lawyers' because the bank instructed them, ahead of the FCA investigations in an attempt to gain as much information as possible from the customers, in order to defuse claims made in the Report. The tactics are similar to the way in which Cruickshank's Report in 2000 was 'derailed' and lack of Government action to correct bank excesses then is now part of the reason why the UK is now in the mess that we are.
'Shocking' Nature Of Banks' Transgressions. Fines totalling £90m for Britain's two state-backed lenders, Lloyds Banking Group and Royal Bank of Scotland (RBS), were modest in the context of some of the penalties handed out to banks since the crisis of 2008. The nature of the transgressions, though, was arguably as shocking as anything seen in global banking during the last five years. – 12th December 2013 Sky Business News
Eddy Weatherill comments: The 'champagne bonus' and 'grand in the hand' initiatives for Bankers 'encouraged' to deliberately mislead customers to buy products which allowed the bank staff to feed off' their customer's naivety over several years continues to evidence the endemic dishonest banking culture in the UK. Even worse, that such a culture has continued despite the banking chiefs expressing 'appropriate levels of contrition' after being again caught with 'their hands in the till'. Are the banks ignoring the regulators when they feel like it and still encouraging staff to 'cream off' bank customers whilst publicly showing contrition?
Business Secretary has referred a report about how RBS dealt with small business to City regulators. RBS put some "good and viable" businesses into default so it could make more profit, it is claimed in a report by government adviser released on Monday. Whilst he acted independently of government in producing the report and did not set out to look solely at RBS - He also said conversations with affected businesses had made a big impact on him. "I feel really sick sometimes. It is really disturbing," he said."It is ruining people's businesses for sure, and in some cases having a huge impact on their personal lives too, even leading to family breakdown. - 24th November BBC Business
Eddy Weatherill comments: Well done for exposing how banks have been destroying small businesses for years. But, now what will happen and who will make it happen? This report has endorsed all that IBAS has been saying for years.
Independent Banking Advisory Service (IBAS) - launched in 1992 as a specialist business banking membership organization assisting bank customers with UK business banking account loan disputes and business banking debt disputes with their bank. Our analysis and investigation of business bank loans, bank accounts, banking contracts, business banking account facilities and banking debt recovery information has been instrumental in our member's success.
IBAS business banking dispute negotiating experience provides proven strategies for business bank customers banking claims and defences. IBAS has excellent banking investigation reputation and IBAS has featured on BBC TV, BBC TV News, ITV, Meridian and Sky News and contributed to editorials and articles for the Sunday Times, Times, Daily Mail, Daily Express and Daily Mirror - see Business: Your Money Not a moving account - BBC 22/07/99
Last modified: 19th May 2018