Right now I’m seeing the banks hold on to money that isn’t theirs for far too long…
Particularly on liquidations, because they think they can get away with it. And more often than not they do, because my fellow insolvency practitioners with ‘far too close for comfort relationships with the banks’ refuse to rock the boat with such powerful work providers – the fact that you as a shareholder in a solvent liquidation will have to wait for your money is somehow of lesser importance to them than their next insolvency job from the bank. It’s a disgrace.
You see, when a company goes into liquidation, responsibility for dealing with an account passes to a special liquidation department – each bank has its own special name for these departments, but they are all the same regardless of the identity of the bank or in whatever part of the UK the department sits – their prime driver is to deprive you of your money for as long as they can, so they can use it themselves.
The tricks the banks are playing right now include:
- The account remains ‘in no man’s land’, inbetween departments for weeks. Speak to your local manager and he’ll say he can no longer deal with things as ‘it’s been passed on’; speak to the liquidations department and they’ll say they haven’t yet got it – because they don’t have a reference, an open file, a responsible official, they can’t deal with it. And no one knows where the papers are or when the case will be opened up. And there’s me thinking that we lived in a digital age!
- Once the liquidations department have the file open, it will then be 4 weeks before they pick it up! Even then they don’t deal with it purposely and conclusively – they look for every possible excuse they can to delay matters, sending out meaningless holding letters asking for information they should already have – say because it was sent to the local branch because that was the only allowable point of contact at that time. They’ll ask for original copies of signed documents again. They send letters second class. They ignore the fact the liquidator’s appointment is already showing on Companies House records as a result of original copies they’ve received;
- When letters go in to them, they will sit in a pile until they come out for a response in a month’s time. They will not prioritise. They will not go and search for letters. Letters sit in piles until they day they come out to be answered. And then the rigmarole starts again.
- When, eventually, they are happy to send the money to you, there’s another black hole of about 3 weeks when you’re being told the cheque is being raised but no one knows quite by whom or when.
- Eventually the money does come out! By cheque, despite the fact we live in an electronic world! Second class. That’s assuming they’ve sent it to the right address. Which isn’t guaranteed – and if this happens, the fun starts.
You see, the bank really does not give a damn about you. The fact you may have had a 25 year relationship with the bank is irrelevant to these departments. You’re a number. They’re targetted with making money, not to provide a service, and that means holding on to your money.
When I deal with solvent liquidations, I refuse to dance to the banks’ tune. I have a clear and proven strategy for avoiding their games entirely, which will see you getting your hands on your money NOW, not in 4 to 6 months time when the bank decides you can have it.
Call me on 01902 672323 to find out how.