The Frustrating Incompetency Of Some Banks

We all complain about bank incompetency. We see it all the time.

There are many efficient, effective, focused, capable and workable banks and bankers but oh, so many more that are none of the above. It defies logic as to how some banks actually operate successfully or even open their doors for business every day.

Here is a terrific story of frustration I have recently experienced…

My client is totally underwater for millions, under siege by lenders and the IRS, with a few judgments already and more coming. He’s not employed and without remaining resources as so many borrowers are. He has two vehicles that are a few years old and has not made payments for a number of months. The bank is pushing for a repo and an auction which will, of course, result in large additional losses for the bank as well as cost them out-of-pocket expenses.

After working diligently for six weeks to satisfy the bank’s Power of Attorney requirements, we finally succeeded in accomplishing this monumental objective. I might add that after our forms were rejected we did use the bank’s forms and this also was rejected, amazing as that may seem. However, after six weeks of discussion we worked this out. This is fairly frustrating on its own, yet, it gets better, much better.

We have had a buyer for the cars for two months who is willing to purchase at fair market value with a check in hand. Finally, after begging to talk with a supervisor for over a month, I received a rejection and a counter offer for the exact amount owed plus an additional few thousand for unpaid interest in arrears. In other words, not one penny of compromise. I have spent days seeking out someone to discuss this matter with and to negotiate a reasonable workout and have failed miserably. Instead, we will turn over the cars to be auctioned which will result in massive losses and out-of-pocket expenditures well beyond what we could have derived from a ready, willing and able buyer ready to pay Blue Book value.

I guess the bank would rather absorb greater losses and expenses than necessary. I guess they are unaware of their obligation to mitigate the borrower’s losses. I guess they just do not get the reality of the situation. Either that, or they own a used car lot on the side.

Just one more chapter in a series of many silly banker stories. No wonder the banks are in trouble and remain as such. They still have not figured out what is going on and how to deal effectively in this current market.