Banking practices – not in my name

The latest revelation to further damage the credibility of the banking system comes with the report that RBS (which is 82% owned by the tax payer) have according to a report submitted to the Business Secretary “forced vibrant businesses into financial trouble only to profit from their distress by squeezing them for exorbitant fees and charges and ultimately seizing their assets to swell their own vast property empire”. It is a damming indictment.

Following on from the financial chaos precipitated by the banks own negligence and poor management it has become increasingly difficult for businesses particularly SME’s to gain or in some cases maintain funding from the banks.

As the banking community sought to repair their damaged balance sheets they have resorted to any means both fair and foul to generate income.

This latest example follows on the heels of other misdemeanours such as PPI miselling, rigging of LIBOR and currency rates.

Contrast the actions of the banks with those of merchants and suppliers whose business is supplying goods to customers on credit terms.

Unlike the banks these companies rely on a simple mechanism of payment, an invoice.

Goods are delivered and are due for payment on a specified date it is the ultimate statement of trust and as such should not be abused.