Sue the Bank? Because You Can’t Repay and They Did Something You Do Not Like?

I see it often enough, borrowers in default find a way to make it “the bank’s” fault. Somehow, the borrower gets it into his mind that the bank did something wrong to violate the borrower’s rights and if it were not for this wrong, the borrower would be fine. (Silly, silly, silly.) So, they sue or complain or do something to get back at the bank. This makes the borrower feel better and completely destroys their working relationship with the bank. Nice job.

For example:

1. “They said they would cooperate and they went straight to a demand letter. Not fair, I will complain.”

2. “They took so long doing a modification that I went into default. It’s their fault.”

3. “They would not give me an accounting and I think their numbers are wrong. I will not pay until they comply with my reasonable request.”

4. “They conspired with the seller and knew the numbers were cooked. It’s their fault.”

5. “They mislead me. Whatever. Of course.”

6. “It took way too long for them to do something so the resulting failure is on them. If they acted faster none of this would have happened.”

7. “They did not do what they said they were going to do.”

8. “They held up the closing for many months, costing me a fortune in wasted time and money and then the money was inadequate to do the job. It’s their fault.”

9. “They did not lend me enough. I told them I needed more and they would not listen to me so I came up short. It’s their fault.”

…and on and on the bad excuses go. They complain, file suits, write offensive letters, call their senators, etc. In short, they do everything they can think of  to upend the bank which only results in the borrower receiving similar treatment in return and no chance of any real opportunity to work the matter out.

It’s simple: do not sue the bank. You will lose, it costs a fortune and what is the point anyway? Do not write insulting, incriminating letters. It is ridiculous. Do not call politicians because they are powerless; this is a commercial contract not a political issue. You defaulted, not the bank. They lent you the money, how could they really be wrong? You cannot win by being aggressive. You must work with the bank and then be firm on your purpose and objectives but cooperate and be reasonable; they are your business partner and they can hold you to your contract, or, if you do it correctly, you can gain their cooperation in a workout. That’s the way to do business.

It is bad business to attack the bank. It will not work, it will not yield a positive result and it is counterproductive.

Work with the bank, get expert assistance and do your workout. Call if you need help. Call faster if you have attacked the bank and now realize that did not work out as hoped. Norm will arrange a no-obligation teleconference for us to discuss your options: 413-584-2581.