Some joyous news to report today my lovelies, for the stunts they pulled, and the shocking treatment of their BBL customers and of course their many mistakes and errors in processing and paying out Bounce Back Loans and some other Government Backed Loans, the British Business Bank have given those Lenders a very costly slap on the wrist.
That being they no longer have the Government Guarantees in place on almost £1 BILLION worth of BBLs, CBILs and CLBILS, spread over 10,786 individual Loans. Lenders can voluntary give up their Guarantees when they know they have messed up or will have them yanked when they are audited and have found to have committed some form of wrongdoing with those Loans.
Where does that leave you if you have one of those now Guarantee-Less Bounce Back Loans, well unless the Lender wants to go to court with their tails between their legs and and explain to a Judge how they fired out up to £50,000 with no credit checks and no affordability checks, and made all manner of other mistakes, I would be tempted to say you are in a very good position currently.
However, you know how this games works, and as such I will monitor this situation as no doubt some of those Lenders will start bleating and getting upset and will be pulling all manner of stunts to try and get those with a Guarantee-Less BBL to pay them back, somehow.
Below you will find a Freedom of Information request you may find of interest, which I believe Reuters the news agency put in and I managed to get hold of. I did ask the British Business Bank for a comment.
A British Business Bank spokesperson said:
“The British Business Bank has a good relationship with scheme Lenders and works with them, including through its audit process, to make certain they undertake their obligations under the Guarantee Agreement. This is important to ensure full compliance by Lenders to the scheme rules and protects taxpayers’ money.
“Lenders continue to play an integral part in the delivery of the Covid Loan Schemes. They remove loans from cover under the Guarantee voluntarily, often after discussion with the Bank, and act in good faith for reasons such as data correction, data error and reasons where the lender has determined the loan may potentially be ineligible.”
Freedom of Information Request