- 30 Oct
Changes By Banks To Overdrafts and Loans
I received an email from the Federation of Small Businesses today advising that they are meeting with 6 commercial lenders in Sussex. The meeting is to discuss the issues that their members are experiencing due to unilateral changes by the banks to overdrafts and loans.
We have also heard of some examples of this. I was talking to someone the other day that had their credit limit drastically reduced following receipt of a large payment into their account, despite the fact that they had been operating within the bounds of their facility.
Despite what may be said to the press or to Government, the agenda of some of the banks is clearly to increase charges, in order to recoup past losses, and to drive the risk out of their lending portfolios. This is going to constrain small and medium sized businesses further impacting the UK economy.