Bank Manager Personal Interest Conflict

FACTS

"G's Company was trading since the early 2000's and part of the business was involved in property development in Cyprus. As part of the process, the bank manager had encouraged the company to accept the bank manager's brother as an investor in the business.''

As the financial crisis in 2008 took hold, the bank manager told G that if he wanted the facilities to continue, the bank would lend the company 30k to repay the bank manager's brother's investment in the company, and 150k of the bank's funding, including the new overdraft above, was to be newly secured against two properties personally owned by G.'

OUTCOME

G agreed to the terms under some duress in an attempt to keep his business going. Of course, it was only a matter of time before the company was no longer financially sustainable and it went into insolvency.

The bank were pressurising G to sell the properties in payment of the liabilities; they had taken some considerable pursual action to recover 150k plus interest plus costs

G approached us to deal with the matter; he wished to move on with his life and had already offered the bank 50k to settle the matter, which the bank had refused.

With our involvement the bank agreed a full and final settlement of 10k and with a full release of all security.

23 November, 2015 by Mel Loades

 

 

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