The Banker Bully

Throughout my career at Second Wind Consultants, bankers have immediately taken a negative approach to our involvement.  Now let’s analyze what SWC being involved with a client means to the bank.  I have listed a short list of the pros and cons from a banker’s perspective.

Pros-

Faster process.

Client does not run and hide.

Full disclosure.

Higher recovery on Assets and Personal Guaranty.

Limited or zero direct costs to the bank through the process of liquidation, collection, etc.

Cons-

Client does not liquidate protected accounts such as 401k.

Bank must actually read the numbers involved and not simply sit back stating a perfectly valid offer is too low.

Client has access to ways of directly submitting to the SBA if a banker is trying to stonewall the client for no reason.

Bank cannot bully the borrower.

I made sure the last statement was read because here is where the real issue is.  There are extraneous factors such as other fraudulent settlement/workout companies that the bank truly should be avoiding, but it is an easy task to determine if we fell into the category of being a predator.  Have our client on a call that we are involved in so he/she can let the bank know if they truly do agree with what I am proposing and know the ramifications of our actions for example.

No, the real problem is the bank is used to bullying borrowers and guarantors into giving up assets that the law says a bank should not be able to get.  They bully people into putting family members in financial jeopardy in an effort to keep the bank at bay.  Collectors will try any and all tactics that they feel they can get away with.  I have personally documented over one hundred violations of the “Fair Debt Collection Practices Act.”  This document is easily available online and states the ways creditors are allowed to pursue borrowers and guarantors.  The penalties listed within for violation, depending on how egregious the violations were, are either 2% of yearly revenue for the violating company or $250,000.00, whichever is less.

After reading the costs associated with violation, I bet you are wondering why anyone would take the chance.  The answer is simple.  The American borrower/guarantor is unaware they have rights.  They believe the creditor can do whatever they want in the act of collection up to and including taking pets hostage for repayment or throwing the debtor in jail.  I have had clients who believed both of the previous facts were rights the creditor had.

So what happens when the bank hears Second Wind Consultants is on the case?  How do they respond?  They try a number of tactics, all of which are designed to reach my client directly instead of his documented, legal, representation.

Currently I have a banker who has asked my client to call her directly.  This client is intelligent and simply responded that he had the right to be represented, but think of the gall of the initial request.  If he had hired an attorney do you think that email would have been sent?  Of course not.  The bank is attempting to avoid my client’s rights.  Other bankers simply say they will not work with us and attempt to ignore that we exist, continuing to make collection attempts on the guarantor.

The point I want my clients and anyone else reading this in the hope of some answer to their situation to take away from this post is; know your rights and options.  Enforce what you can against the bank to protect yourself from practices that should be criminal.  You have the right to representation, the banker cannot throw you in jail or even call your family to discuss your situation, and most importantly, you did not do anything morally wrong.  The banker will try and make you feel like a criminal for not paying your debt.  If you are a millionaire, they may be right.  If you are like the rest of the debtor population of this country you simply cannot pay the debt, due primarily to forces outside your control.  Stand tall, weather the storm, and seek help.  Your job is not to face the banker, let an expert handle that job.  Your job is to hunker down behind the shield we provide and protect your family and friends.

You have heard it before and you will hear it again, we are here waiting to help.  We choose the fight you are hoping to escape.  Let us handle the creditors and their subversive tactics so you can get back to the business of living.