Bank not liable to access business viability...

The Banking Ombudsman has rejected a claim by a borrower alleging that his bank should have assessed the viability of his proposed business venture when lending him funds.

The Ombudsman held that the bank was obliged to assess his ability to repay the loan.  In his application it stated that he would service the loan from his current salary and work on the business in his spare time.  The business income was not a factor in the loan’s approval.

The business failed, but the Ombudsman held the bank did not have to assess the soundness of the business when lending as the loan was based on his other income.

If you need help with a banking issue it pays to take advice from a professional experienced in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley