Independent Banking Advisory Service (IBAS) Frequently Asked Questions

Q. What is the Independent Banking Advisory Service (IBAS)?

A. IBAS is a unique National non-profit making, campaigning membership organization formed in 1993 and which specializes in negotiating business banking disputes and advises how to avoid or prevent business banking disputes creating business failure.

Q. I'm being made redundant and I'm planning a business 'start-up', I have already been to my bank and they will lend me money on overdraft but only secured against my home. My wife is not happy with this idea - what options are there?

A. Every business 'start-up' is unique. IBAS provide membership for business 'start-up' so that small businesses can obtain practical assistance with planning their 'start-up' and obtain essential knowledge in the 'problem' areas where IBAS research shows small business to be 'at risk'. We also provide individual businesses with 'on going - hands on' support, with answers to the many questions, when you 'start-up' in business 'on your own'. We would suggest you email us before you sign any forms for security for bank loans or bank borrowing, or enter into any formal or legal business partnership agreement  - reading our business banking articles may provide some useful banking and business background.

Q. What makes IBAS unique?

A. IBAS is unique because there is no other organization that provides members with 'in depth' specialist banking advice and the individual and specific banking assistance based on their individual business banking needs and circumstances, whilst also conducting independent banking case investigations and negotiations, without profit.

Q. Do you have any local office close to me?

A. IBAS is a National organization and disputes are automatically elevated from a 'local' level to a National level. This protects our member from 'local' professional's interference or further 'local' financial conflict, whilst also reducing personal animosity between the bank and customer.

Q. How will you investigate my case?

A. Each case is different in individual content. Therefore each case is investigated on an individual basis. But, we also assess information provided on each case against others where there are similarities. IBAS investigate cases professionally and objectively to ascertain the facts with which to establish how best a resolution can be achieved.

Q. Why would we want to use IBAS when organizations such as CAB or CCCS exist?

A. Those organizations cater for mainly personal and multiple debt issues. CAB are sponsored (or funded) by government/local authorities/banks etc. CCCS are sponsored by banks and lenders who are seeking payment from their customers. IBAS is a specialist banking and business banking advisor which is not funded in any way by banks or lenders.

Q. A friend has a business banking problem which we've discussed, but I'm not sure whether your service will be able to help him - what banking disputes and issues do you deal with?

A. The types of business banking issues we have investigated for members in the last year covers a wide area and an enquiry by email or phone to us will obtain a swift response to clarify if we can assist with a specific banking issue or banking problem.

Q. Which banks provide funds or sponsor IBAS?

A. None. We are not funded by any financial institution and we do not have funding from government.

Q. How do you make any money?

A. IBAS was formed as a non-profit, completely independent organization in 1993 and remains so today. Membership provides our organization with funds with which to operate and remain operational.

Q. Does IBAS provide anything to assist UK education in banking services?

A. IBAS actively publicize banking issues by providing media comment and analysis for media, which does provide better consumer understanding of all banking issues and services. We do not have the resources to directly assist in UK Banking education projects.

Q. I am an accountant/solicitor and feel qualified to deal with my own banking dispute - why would I consider IBAS?

A. Many believe they personally possess the knowledge and expertise to deal with their bank problem or bank dispute, in the same way they would deal with any other business problem or dispute. If that fails they inevitably then go to existing accountants or solicitors believing that they will have the knowledge and expertise to act in their best interest.

Unfortunately, most banking disputes come to IBAS after none of the above has worked and the dispute has become further 'personalized' - making a banking dispute resolution much more difficult. IBAS minimize 'personal' animosity in any banking dispute and also remove the dispute from all 'local area influences'. There may be many such 'local are influences' and this is an extremely important reason for IBAS to become involved at a National level.

Q. My bank seems to be admitting their mistake/s by asking me to visit the branch to discuss the dispute - am I right in thinking that?

A. Banks do not accept their own mistakes easily. Their first reaction is defensive and protective of their own position. If a bank arranges a meeting for any complaint to be 'aired' - it is for them to listen and take notes of what is being claimed by you. The 'listening' procedure is primarily fro the bank's protection and to sound out how easily the complaint can be diminished or totally destroyed.

Q. My solicitor has been dealing with my bank for years, wouldn't it be better for him to deal with my business banking dispute?

A. It is unwise to use 'local' accountants or solicitors as they may have their own relationship with that particular bank, which may not be to your advantage. We have seen far too many banking cases where financial conflict is only just 'below the surface'. Our banking investigations have shown that many businesses were misled by the same professionals they trusted. Bankers in local communities have many professional contacts and may 'call in' favours or overlook indiscretions, where necessary, to suit their own agenda.

Q. My previous business bank manager has said he can help with my business banking dispute, is that a good idea?

A. In our opinion, the banking industry reputation for integrity and honesty has been lost and almost destroyed over the last 14 years. Bank habits of 'ripping-off' bank customers for extra profit and bonuses do not provide ex-bank managers with good credentials for 'helping' any business with their business banking dispute. So, no it is not a good idea.

Q. My business appears under more pressure from my new bank manager - is that normal?

A. A new manager will always be looking not only at your business and your security but also how his or her job may be affected by previous banking decisions which have already been made. Change of bank manager and/or moving accounts to a business banking center may provoke increased business banking pressures. IBAS experience and business banking analysis can assist you in minimizing exposure to such banking pressures.

Q. My business is now less profitable than it was. I'm concerned about my own personal position and also how personal guarantees I have already provided may affect me in the future. Can IBAS help?

A. Personal Guarantees are legal agreements on which the bank will inevitably rely if a debt is outstanding. Most businesses find it difficult to cope when they are put under increased banking pressures. So, It is very wise to obtain specialist banking assistance before that happens and Yes, IBAS can assist in that area - see Personal Guarantees

Q. As a small business the most difficult problem for me is knowing who I can trust in my local community - how can IBAS assist?

A. IBAS cannot tell you who to trust or who not to trust - but we do act as a business 'best buddy' for many small businesses and we know from them that it helps if you can talk 'through' confidential issues and obtain the correct information to properly assess any banking situation. Sometimes, being able to do that with someone who is specialized in banking and small business issues and who is not 'locally' based is enough to prevent a problem arising.

Q. Surely my accountant can provide me with the same information and advice that you provide?

A. Accountants do not have the same information we possess. IBAS knowledge of what banks have done over a long period of time to many thousands of businesses on a National scale provides us with unique business banking information and also experience with which to advise on business banking matters.

Q. Can you tell me if my bank has overcharged my business account during the last 6 years?

A. Provided that IBAS membership is available and you can provide the necessary information, then we can carry out a business bank account audit for the period. Our investigations will show how much the bank should have charged under the agreement and whether there is a bank overcharge to claim back or where necessary a banking refund direct to your account.

Q. If I take up membership and there is a proven bank overcharge on my Business Bank account, what percentage will IBAS take for doing all the work?

A. IBAS do not ask for or deduct any further payment - all that is required to successfully obtain a bank overcharge or banking refund for your business is a current IBAS Membership.

Q. Is membership always available and open for me to take up?

A. Membership is offered by IBAS after we have received specific information relating to the banking issue/dispute. We can then  confirm that it is a matter on which we can offer membership and whether membership is available at that time. Membership is limited by type of case, number of advisors available and their caseload. This means there may be a waiting list for some types of case, particularly, those which involve a bank account audit or in depth bank account analysis.

Q. My partner and I have divorced and this has created some banking issues - can membership assist me?

A. IBAS do not offer membership for issues which involve a Divorce itself, wills or probate. You will need to be more specific about the banking issues and whether this is a business banking issue, or not, for us to determine if membership can be offered.

Q. My bank manager appears to be honest and helpful - can I trust him for business advice?

A. Your question needs to be turned around. Why shouldn't he seem honest and helpful. After all it is their job to obtain your business. Hopefully, the bank will also be competitive in the banking products they offer you. As for trust in their business advice, that's a different issue altogether. Banks seek loyalty from their employees and train them well to look after the bank's best interest. That means any interest in your business has to be second to that of the bank, in any business dealings. So our answer to your question: can I trust him for business advice? - is - that no business should be seeking business advice from a bank and should also be comparing products the bank is offering against other providers.

Q. I have a past mortgage problem and I am now being chased by debt collectors for what they say is a mortgage shortfall debt claim - What is a mortgage shortfall debt or a mortgage shortfall debt claim?

A. These issues are dealt with more fully on our website at Mortgage Shortfall Debt explained or mortgage shortfall debt claims and  resolution of mortgage shortfall debt claims.

Telegraph article may help those who are now faced with repossession or those being chased for a past repossession and ensuing mortgage shortfall debt: Repossession: why none of us is safe - You can't make your mortgage payments, so the bank takes your home. William Little talks to those who've suffered the trauma and outlines the homeowner's rights. The Full Telegraph article includes IBAS Mortgage Shortfall debt claim cases and comments regarding repossession and mortgage shortfall problems - Telegraph 03/05/2008