Exposing Our Shame

Submitted by Heather Cole

Submitted by Heather Cole

Several months ago, I wrote an article entitled Independence: A Blessing or a Curse. The next week, it was my intent to write an article on how the banking sector fits into the equation. I also intended to put in an insert from my manuscript. Then I wanted to include Ann Riley-Fox’s story. However, I kept putting it off. The news I received yesterday was not good. Here is what I may have written months ago. Maybe now it is being written at an opportune time.

My earliest memory of a financial institution was not pretty. It was about the Civic Society in Bridgetown.

The Civic Society was located on the corner of the eastern end of Eastern end of Swan Street. There were few banks back then and many people including my mother saved some of their wages there. I do not know how much she was paid -it never entered my mind to ask but I believe that it was not much. However, she set aside a little each week to deposit at the Civic Society in Bridgetown. Maybe she was saving to buy a house for our education or just saving for a rainy day. I do not remember how old I was but one Saturday when she went to deposit some money the Civic Society was closed. There was no notice on the door to advise if the institution was closed or relocated. In dramatic fashion Civic Society just disappeared. It never reopened. Gone were her life savings –so too the life savings of many poor Barbadians. How much I do not know. I was too young to understand. I do not recall if she cried, if so not in my presence.

Thoughts of it now that I am grown would put me in despair if every cent I possessed disappeared into thin air. I do not remember if the newspaper carried a story about it. We never found out what happened to the money. It was just gone, probably into someone’s pockets. As far as I am aware no one was ever held accountable for what happen to that money. Maybe it was a secret someone took to their grave. After that, for the rest of her working life, my mother never trusted any financial institution and saved her money at home until she retired and her pension had to be deposited into a bank account.

It was not the last time Barbadians suffered losses through financial institutions. It has happened with banks and insurances companies and the results were always the same; the people are the ones who loose and are not protected to prevent future reoccurrences. The biggest of these to date has been the CLICO scandal.

It would be remiss of me not to look at the role played by the banking sector in a post-independence Barbados. With an excess of 15 billion in liquidity banks have very restrictive, deceptive and abusive lending practices or refuse to lend to black Barbadians. They have always portrayed a lack of corporate social responsibility to the poor. In our 50th year of independence it is a crying shame that there is no legislation to ensure that the banks meet the entire credit needs of the communities that they serve. There is no Equal Credit Opportunity Act. By now the banks should have been meeting the credit needs by providing services and consumer loans to low and moderate income areas. They willing open their hands to receive money so to add to their savings or reinvest but hardly lend to the poor black community. One reason why black entrepreneurs and business persons have not grown significantly is because of restrictive banking policies.

There is however another occurrence that the banking sector seems to have escaped unscathed with their reputation intact, people are ashamed to have themselves identified as victims. It is known as foreclosure or the banks taking up a person’s house. Whatever you may call it; we seem not to want to discuss it. Yet thousands of Barbadians have lost their homes due to the harsh economic environment that has caused them to lose their jobs.

Ann Riley-Fox, who was a successful black business woman in Barbados, yesterday she lost her fight with First Caribbean International Bank who unceremoniously evicted her from her property. A change in the business policies of the bank negatively affected her as a black business person. It was as though she was targeted and set up for failure. I said she lost her fight but what I really intend to say is that her fight must now become the fight of every Barbadian, those who have lost their homes, those who are losing their homes and those who do not know if and when they will lose their jobs which will jeopardize their mortgage. It is time to cast off our shame and rise up and fight back restrictive policies that for far too long have never been in our favour. Some may argue that we have credit unions but what good are credit unions that turn around and bank your saving with the banks that are against your growth, economic independence and advancement?

The very fact that black banks are growing now in the USA should be taken note of. We spend half off our lives working and saving our money at these commercial banks, then for 20 years or so pay them a mortgage. Then one day you lose your job and what happens the bank forgets the good times in a flash. It is time that Barbadians to pool their resources to form their own bank and withdraw their finances from the foreign commercial banks . It is my hope that the Fairness Committee will examine this and other initiatives.

96 comments

  • It is time for Credit Unions to be allowed to form their own banks….the laws prohibiting them must be changed.

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  • @Vincent

    Which laws do you refer?

    Specifically what prevents credit unions from forming a bank?

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  • David

    We need to hear from Caswel on this,he is far more qualified than I am to quothe the relevant passages.

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  • And somewhere by the corner of Marhill Street and St Michael’s Row, stood a black owned bank, called something like Cooperative Credit Bank. It was operated by one Mr Simmons,or Simmonds and was often referred to as Simmonds Bank. Like the Civic, many low income Barbadians deposited a little something with Simmons. Every Christmas time there was always a near riot out side of the bank, as Simmonds used to frequently run out of cash, and had to close down the operation, in order to go down Broad Street to withdraw money from a bank account, which was in his name. Simmonds also sold land to poor people at Mellows, without any papers. They eventually loss what ever monies they had paid to Simmons.
    Simmonds pioneered the planting of the seed of distrust in the minds of Barbadians,in relation to dealing with financial institutions.

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  • Barbadians already have their own black banks called meeting turns absent of govt regulation just a heavy dose of trust and a smidgen of common sense and it seem to have worked out pretty well in helping many poor families buy school books and supplying grocery on the table and paying the monthly bill.
    Now if govt would allow barbadians to openly operate a small black bank with same rules and regulations as the meeting turn mom snd pop homegrown bank the possibilty that a bigger operation can unfolded launching a big black owned barbados bank to succeed is a reality.
    However the models being used by mainstreem banking industry has produce theft and fraud as seen in the recent Wells fargo scam meltdown
    Blacks can produce a model that is simple free of regulation that does not encourage theft and fraud similar to that of the model draw upon the meeting turn.
    Might sound silly to some but bears the question why have the meeting turn remain a domaint place for financial resources after so many years for the black family a mom and pop idea solely built on trust

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  • In the meeting turn from time to time you will find some scoundrels who come up with an excuse to have their turn advanced, due to sickness in the family etc, and then scarper off and dropping out of the system, still owing money.

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  • @Heather Cole ‘It is time that Barbadians to pool their resources to form their own bank.”

    But isn’t this exactly what the Civic Society was?

    Did the Civic fail because the depositors money went “into someone’s pockets” or because the Civic was too soft hearted, too unbusinesslike, too unwilling to foreclose on those of its borrowers who were unable to repay their loans?

    If First Caribbean International Bank did not foreclose on “Ann Riley-Fox, who was a successful black business woman in Barbados” how then was first Caribbean supposed to recover its money?

    @Heather Cole “Ann Riley-Fox, who was yesterday unceremoniously evicted her from her property.”

    Sadly if Ms. Riley-Fox was unable to service her loan (perhaps for many months or years) then the house in which she lived was no longer hers.

    I am not a defender of banks, just a defender of common sense. Obviously interest rates on loans in Barbados are too high, and their interest rates on savings are way too low. But the central bank permits this, nay encourages this, and the bank’s governor does not talk much much to the media/us.

    Because if he does not talk to the media how then are we the people supposed to understand what it going on.

    Not all of us have earned doctoral degrees in economics.

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  • The problem with black only banks is everyone takin money out and nobody puttin money in

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  • I am not aware of any black population that is adequately banked.

    Like mathematics, physics, statistics, and so many other fields of expertise, successful banking seems to be beyond the capabilities of most black people. So whether we live in Barbados or Burundi, Toronto or Trinidad, Nigeria or New Jersey, we see posts like this one, seething with resentment of our own incompetence and failure, but seeming to blame others for our predicament.

    Liked by 1 person

  • “With an excess of 15 billion in liquidity banks have very restrictive, deceptive and abusive lending practices or refuse to lend to black Barbadians.”

    IF you can prove that banks are more interested in the colour of the skin of their customers, than in the colour of their money, they can be sued. And given the banks huge aversion to risk, I doubt any of them will knowingly expose themselves to prosecution under discriminatory lending practices.

    Restrictive I would bet is correct. Have you ever seen the write offs of major banks in the Caribbean? They lost a small fortune. The liquidity refers to the system, that money belongs to their depositors not to the bank.

    Commercial banks are in the business of making money. They are not a charity nor a development bank. They don’t ‘have to lend the money’ if in their assessment the borrower cannot meet the obligations of the loan. Much of this is simple mathematics not at the discretion of the loan officer.

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  • UNDERSTAND THE CONSTRUCT/PROTOCOL… The Central Bank of Barbados is not owned by Barbados, it is owned by the ROTHCHILDS

    https://realitieswatch.com/complete-list-of-banks-ownedcontrolled-by-the-rothschild-family/

    THE CENTRAL BANK construct the rules for commercial banks… therefore by Policy and contracts they rule by an established FRAUD from the top, all that follows is fraudulent and illegal, their policies and contractual business are of illegal construct, This is absolute grounds for any recourse of INJURY suffered via BANKING STRATEGIES.

    A CLASS ACTION LAWSUIT IS RECOMMENDED for
    1. FALSE and MISLEADING INFORMATION/advertising/statements.
    2. FALSE and FICTICIOUS CONVEYANCE OF GRAMMER as an illusion written in adverb verb.
    3. DEPRIVATION OF RIGHTS under the color of law.
    4. CONDUCTING CRIMINAL ACTIVITY HAVING KNOWLEDGE and making no effort to modify or disclose.
    5. FOR THE REFUSAL, DELAY OF THE EQUAL PROTECTION OF THE LAW.
    6. FOR NOT CONVEYING LEGAL DOCUMENTS in the correct Quantum Parse Syntax Grammer.
    7. JUDGEMENTS made by impersonators. PERJURY (having knowledge of a fact but tells a lie TO TWIST IT).
    8. MISAPPROPIATION. Failing to carry out ones’ legal duties..monetizing other than that intended.
    8. MAIL FRAUD by non affixing or photocopying of stamps and issuing supposedly LEGAL documents.
    9. MISREPRESENTATION. (ANYTHING within within a box cannot be considered).
    10. UNILATERAL CONTRACTS (Contracts with one signature, not signed by the other party).

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  • @NorthernObserver

    This article from last year supports your point about how the large Canadian Banks Caribbean operations are being taken to the cleaners. It should say a lot about the performance of regional banks if we venture to extrapolate.

    Trouble in Paradise: Inside Canadian banks’ billion-dollar Caribbean struggle

    TIM KILADZE

    Globe and Mail Update (Includes Correction)

    Published Thursday, Feb. 26, 2015 8:58AM EST

    Last updated Friday, Feb. 27, 2015 7:16PM EST

    45 Comments

    They arrived in droves starting at 5:30 a.m., desperate to secure a steady pay cheque. By midmorning, the anxious mob totalled 5,000 people.

    Sandals, a Caribbean hotel chain, was hosting a job fair in Barbados to hire staff for a brand new resort. Because thousands of people showed up for 600 jobs on the October morning last year, scores of applicants were forced to wait outside under the blistering sun. Things went from testy to unruly as the temperature neared 32 degrees; Sandals had no choice but to call the cops.

    The chaos is one face of the ugly downturn sweeping through the Caribbean. Though the global financial crisis technically ended a few years ago, its punishing aftershocks are still being felt—and they’re amplified on island states that depend on tourist dollars for support. Countries like the Bahamas and Barbados are marketed as idyllic vacation spots with white sand beaches, but their local economies are anything but serene.

    In the Bahamas, the unemployment rate was 15.7% at the start of February—higher than in Portugal, one of Europe’s worst-hit economies, and well over double Canada’s rate. The situation is even worse in Barbados—and arguably even more surprising, since the loyalty of British tourists to “Little England” had seemed to be bred in the bone.

    The colonial tie meant little during the financial crisis, and the resulting downturn drove Barbados’s debt load to nearly 100% of its gross domestic product. Struggling to pay the bills, the government fired 3,000 public servants last year. It’s also gone cap in hand to hotel developers, offering major tax concessions to spur investment—hence the scene at Sandals.

    Financial institutions are, of course, at the epicentre of this storm. Take the case of Sagicor Financial Corp., a leading regional life insurer, based in Barbados. Because the country’s sovereign debt has been downgraded several times, Sagicor’s corporate debt rating has also suffered. In January, the company abruptly announced it was relocating its head office outside of Barbados, shocking the island’s 290,000 citizens.

    Canadian lenders have it even worse. Our banks are often praised for sidestepping the U.S. mortgage crisis and for avoiding the ugly economic woes that still wreak havoc in Europe, but the truth is, they’ve hit trouble in paradise. Royal Bank of Canada, Bank of Nova Scotia and Canadian Imperial Bank of Commerce are by far the Caribbean’s three largest lenders, dominating both personal and commercial banking. Combined, they’ve written off more than $1 billion in the region since the Great Recession.

    http://www.theglobeandmail.com/report-on-business/rob-magazine/perils-of-the-caribbean/article23199267/

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  • Miss Ann Riley-Fox need to examine her HARD COPY of her “contractual agreement” with the Bank…. IF she has one …for any claims of the above.

    Please familiarize thyself of the content of these links…

    http://dwmlc.com/

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  • Well Well & Consequences

    $1 billion is whatnthey have written off, that’s all, did they mention that they were also insured and did they even bother to tell you what huge profits they have earned in the 40 or so years they been in the Caribbean.

    I would not shed a tear fio any of those banks and waste my precious water, if they were not making out like the bandits that they really are, they would leave the Caribbean permanently.

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  • I feel a sense of loss and fear of the future as if I am helpless. I contend that it won’t be long before we see people taking matters into their hands or a platform being prepared for a wave of riots. Remember 1992? Barbados boycotted Kensington. That fight is in us and the right spark will light an uncontrollable fire. Anderson Cummins was not a cricketer that lit up the field but he was simply ‘unfaired’ and that provided the catalyst for the boycott. It was the coming of age for us who knew nothing of the 1937 riots. Please remember that we had just marched the previous year against the government’s austerity measures.

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  • Simple Simon November 20, 2016 at 12:08 AM #

    Did the Civic fail because the depositors money went “into someone’s pockets” or because the Civic was too soft hearted, too unbusinesslike, too unwilling to foreclose on those of its borrowers who were unable to repay their loans?
    ………………………………………………………………………………………………………………………………………………

    No because the rent was too high and they were unable to pay after years of struggling to keep head above water and keep the business in good standing eventually they were unceremoniously evicted by the white owners

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  • Colonel Buggy November 19, 2016 at 10:36 PM #

    I thought Mackie Simmonds was also involved in the Civic and did they not have Panama money to buy plantations such Joe’s River,Frizers,Springfield,Trents and some more?

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  • Banks have become too cumbersome and looking out for sel interest ;; look how the CEO of a bank lives using other people money to enrich themselves while the depositor have to pay high fees to support them and the high flatulent members on the board
    Give me an ole fashioned meeting turn any day where the pie is equally shared among its members there is no skimming of the depositors money to make those at the top become fatter and fatter of the little guy money
    Better yet the rules are simple and easy to follow with no long hangman noose attached in the form of belly aching fees and out of control interest rates
    The reason why big banks encountered so much problems is because they forget the rule of thumb “Small is better”

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  • What an odd concept ..lending money and wanting it paid back,

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  • It is difficult to even open a simple business account these days.

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  • Oh dear, Oh dear. The governor of the central bank is on record as saying how well the Canadian banks did during the crisis. I believe that is based on an essay published by the NBER. Our banks are now effectively supervised by the Bank of Canada.
    But it is wrong. Canada may be an OECD nation, but financially it is second eleven. A properly managed Guyana should punch above Canada, a well run Jamaica should carry the same weight as New Zealand.
    That is why when Osborne wrongly appointed Mark Carney as governor of the Bank of England I wrote that he was wrong. Time has proved me right.
    The job should have gone to Adair Turner, one of the freshest and most dynamic minds at work in London. Turner’s problem is that he can think for himself, he has his own mind. A bad sign in this society.
    He should follow group think.

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  • What is odd is that conventional banks does not lend money they borrow the depositors money and then sell it back to the depositor as a loan at high interest rate that only smells of theft and fraud which is legal in the banking industry;

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  • @TheNegrocrat

    Is it difficult to open a ‘simple business account’ and a credit union or regional bank?

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  • @chad99999 November 20, 2016 at 3:59 AM “I am not aware of any black population that is adequately banked. Like mathematics, physics, statistics, and so many other fields of expertise, successful banking seems to be beyond the capabilities of most black people. So whether we live in Barbados or Burundi, Toronto or Trinidad, Nigeria or New Jersey, we see posts like this one, seething with resentment of our own incompetence and failure, but seeming to blame others for our predicament.”

    It is not just a black people thing. There are many white people in the U.S and elsewhere who are “under water” that is the house is worth less that the amount of money that is owed on it.

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  • What a shame!

    There was a time when Ann Riley along with Joseph Niles and Sister Marshall were the local acts to follow for those interested in the religious stuff.

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  • A group named Fairness in Action has been formed to respond to Ann’s plight. Anyone who is facing a similiar problem or is desirious in helping can contact fairnessinaction@gmail.com or telephone 882-8304.

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  • @Heather

    It would be interesting to know the change to the agreement by FCIB which created the duress for Ann Riley-Fox.

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  • @ac
    ” look how the CEO of a bank lives using other people money to enrich themselves while the depositor have to pay high fees to support them and the high flatulent members on the board”

    Doesn’t that remind you of the PM, his band of ministers, and the appointees to statutory boards.

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  • Mackie Simmonds had a crooked hand in everything. Unfortunately many people were not aware of his schemes and place good money,and trust in his hands, only to loose it.

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  • @:David I will provide that info later today.

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  • I thin a man called Jonesy and his son Arnold Alleyne, grandson of the builder William Alleyne ran the Civic Credit Society.

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  • Ann Riley-Fox, who was a successful black business woman in Barbados, yesterday she lost her fight with First Caribbean International Bank who unceremoniously evicted her from her property. A change in the business policies of the bank negatively affected her as a black business person.

    One law comment here, Heather. In cases like this, given the existence of the “equitable right of the mortgagor to redeem” in all mortgages, eviction would scarcely have been unceremonious, but would have taken place only after a failure on Ms Fox’s part to comply with certain indulgences granted or agreed to by FCIB.

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  • chad99999 November 20, 2016 at 3:59 AM #

    Like mathematics, physics, statistics, and so many other fields of expertise, successful banking seems to be beyond the capabilities of most black people. So whether we live in Barbados or Burundi, Toronto or Trinidad, Nigeria or New Jersey, we see posts like this one, seething with resentment of our own incompetence and failure, but seeming to blame others for our predicament.
    …………………………………………………………………………………………………………………………………………

    that is a lie ,, i present a model that is successful and has been around for many generations financially run by blacks and owned by blacks where money is deposited by several individuals into a savings account weekly and a return on the individual deposit is double or tripled depending on the amount of depositors involved better yet not tied to gargled govt regulation

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  • I am perplex by this decision. First, was there a mortgage indemnity guarantee insurance cover? Was there any protection insurance on the mortgage loan? Could the lender not offer an interest-only deal or even a repayment vacation until the borrower either got back on her feet or sold the property.
    Who now gets the equity she has built up in the property over 36 years? Will this property join the long list of those sold by auction in what appears to be a cash-driven cartel? If sold by auction, will an unqualified lawyer be the auctioneer?
    I say again, we need first class financial regulation. Where are our consumer advocates?

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  • Well Well & Consequences

    This story is odd, a mortgage on a house is not 36 years, nowhere in the world, it’s insane, so we can presume somewhere along the life of that mirtgage, she refinanced, I hear bad stories about Scotia as well as CIBC bank..

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  • millertheanunnaki

    @ ac November 20, 2016 at 4:06 PM

    What model have you presented to refute Chad’s claim? There is significant validity to Chad’s claim with loads of evidence to support it.

    Barbados was once touted as the first ‘black’ nation in the modern world NOT to buttress such a claim. But look what has been happening with downgrade after downgrade and with its social and physical infrastructure crumbling day-by-day.

    Check the shit on the South Coast and you would see ample evidence of stark incompetence and failure of an administration which continues to jeopardize the country’s economic bread basket.

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  • The last people ,I believe, who ran the civic were the Laynes.

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  • The jokers who run our insurance companies are now complaining about the liability costs of road traffic accidents. But they get off lightly. The police, hospital and fire brigade should invoice them every time they are called out.
    The problem is insurance company incompetence. Where are their underwriters and actuaries? Motorists should be compelled to pay for the claims or get rid of their cars. Motoring is not cheap, and wild driving is very expensive.
    It should be law that insurance companies should be compelled to publish their claims records. Expose the whiplash brigade.

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  • Ann Riley-Fox, who was a successful black business woman in Barbados, yesterday she lost her fight with First Caribbean International Bank
    ++++++++
    The reality of the eviction belies the notion of “successful”, Banks ae not run on sentiment they exist as profit making entities that are answerable to Directors and ultimately shareholders. There are thousands of human interest stories about people who have been downsized, laid off or packaged by CIBC because of non- performing loans that negatively impacted profit. The lady gambled and lost end of story, sometimes when the handwriting is on the wall people find it difficult to “cut their losses” and exit with their dignity. Perhaps the bank may have been amenable to a discussion where the home is sold and the loan paid off and the excess from the sale provided to the homeowner. Instead we have a long drawn out court case where there is a tear jerker appeal to the public and the only winners are lawyers.

    This situation is not applicable to the foregoing but for women reading this, if your spouse requests your signature on a loan for a business where your home is collateral, please ensure you get what is called “Independent Legal advice” to ensure that you are aware of the consequences should the loan be in default.

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  • miller i hope you have not forgotten all those failing big banks that help trigger the financial melt down world wide and yes i was referring to a generational mom and pop bank called the meeting turn that has been around before i was born and still exist a model that has not buckled under any economic pressure a model that has help secure a financial safety net for many black families living on the rock self owned and operated by predominately black people.
    Now if you can take that model and expand with better ideas maybe u can become the first owner of a large and economical saving bank for black people
    Think of the power and influence you would have to be a big time backer of political parties

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  • @Sargeant

    Is it always so cut and dry?

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  • @David, Here are the details:
    Ann applied for an overdraft in October 2008 as is the custom to purchase Christmas stock.
    She was refused and then granted on Friday November 28.

    She proposed to repay $100, 000.00 over three months. Jan, Feb, March 2009.
    They said they would have to be repaid at the end of the same December.
    They took it back from her account at Dec 31 2009, 29 days after.
    She had no choice because her goods were in the port. ( predatory lending )

    On December 31,2008 the bank took the whole $300,000.00 then told her that she was over her limit.
    She never recovered after that.

    Late 2012 she proposed to develop 1 acre of land in a very desirable area – lower estate ridge (which they were holding against company debt) by building 10 townhouses
    It was discussed with the bank who told her that the most they would want is the interest paid.
    She went ahead found a experience developer who brought in his technocrats and finance people and agreed it would be a good project and they could make some money. They were committed to the project.
    After all were finalised she went back to the bank one month later and they said no that they wanted their money now. They did not want any long term solution.
    That was 2012. It is now four years hence.

    Given the length of time that has passed, they could have opted for a long term solution. By now they would received what was owed to them.

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  • @Heather

    Some gaps in the info. Why would she have ordered $300,000 worth of stock BEFORE getting approval from the bank? If she received the approval from the bank BEFORE stock order she would have known the conditions of the temporary overdraft to settle in 30 days? Financial companies work with their clients and to consider seasonality for example. It is difficult to understand at this stage what happened here -what the BU household knows is that her business was very popular before its demise.

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  • I think some the year dates maybe incorrect? 08/09

    However. To be granted said overdraft facilities/loan, there had to be some agreement in place? The terms are usually part of that, not something to be negotiated/proposed afterwards?

    And have we managed to combine a personal asset (house) with a business? She was guaranteeing her business debts using her house as collateral?

    If the bank “took” the full amount owing, then she didn’t owe the bank anything? The ensuing development project becomes confusing. There is alot more to this overall story.

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  • @Hal Austin November 20, 2016 at 9:18 AM “A properly managed Guyana should punch above Canada, a well run Jamaica should carry the same weight as New Zealand.”

    True.

    And if my grandmother had balls she should have been my grandfather,

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  • http://www.nationnews.com/nationnews/news/71110/riley-fox-chides-fcib-underselling-home
    Riley-Fox chides FCIB for underselling home

    http://www.nationnews.com/nationnews/news/71192/riley-fox-fighting-fair-share
    Riley-Fox fighting for fair share

    http://www.pressreader.com/
    Riley-Fox fighting for fair share
    “A comprehensive renovation of the house in 2006 which cost just over $400,000 nearly doubled the floor space from 1,800 square feet to 3,431. Included in this retrofit were a recreation room with a fully equipped gym, office/bedroom, bar and lounge area…the small kitchen downstairs was gutted and transformed into a large chef-styled cooking space, complete with granite counter-tops and back splashes. Each bedroom was expanded and jacuzzis, large walk-in closets and dressing rooms were brought in. High quality fixtures like chandeliers, recessed lighting and pendant fittings completed this makeover.”

    Maybe, just maybe too much was spend on extending the house, so between repaying the money borrowed for the extensions, and servicing the needs of her business Ms. Riley-Fox was left entirely as the bank’s mercy…and banks are not known for being merciful.

    Perhaps it is not wise to take out large mortgages when we are in our 60’s, perhaps there is no need to double the space of our homes when our children are grown and have left home or are almost ready to leave, perhaps a chef-styled kitchen is not necessary when we are only cooking for 1 or 2 or 3 people. But I bet that some builder/contractor was made very happy.

    The contracting world/Barbados economy was entirely NOT Ms. Riley-Fox’ fault, but the fact that she had a large new mortgage in a contracting economy left her with no wiggle room and the bank pounced (or waited patiently for 4 years)

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  • Simple Simon,
    I know it is a Bajan habit to make fun of things they do not fully understand. Let us take Guyana: Guyana is bigger than England, the sixth biggest economy in the world, with more natural resources, including gold, bauxite, rice, and many others as you know. Guyana has a total population of about 750000, compared with Britain’s 63m. In fact, London alone has a population of eight million.
    There are enormous opportunities for development in Guyana, if only they can rid themselves of the racist politics. Canada is a second rate country, which punches above its weight in the Caribbean.
    With Jamaica and New Zealand, the populations are similar. NZ has a lot of sheep, but not just the people, while Jamaica has bauxite, world-class coffee and the most creative people in the English-speaking Caribbean.
    What both Jamaica and Guyana need are good railways, moving people out of rundown West Kingston and build decent middle class homes in the suburbs.
    Guyana needs a railway that will make travelling between Berbice and Georgetown much easier. Guyana can take in the entire Caricom population, instead they are crowding Barbados, Antigua and Trinidad.

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  • I am not a friend of banks in the Caribbean, in fact I think most of them are dishonest. But if these are the real facts of that woman’s demise, then it is bad management, not the bank to blame.
    Many people think that if they come in to money it is enough to go out and start a business. They do not take professional advice, they do not undertake any training nor do they hire consultants to guide them.
    It looks as if this woman was over ambitious in ordering Bds$300000 of good before securing the loan; in other words, she did not know how she was going to pay for the goods.
    The repayment period was a bit short, but that should have been sorted out during the discussion about the loan – unless the bank changed its mind – it could not unilaterally change the contract once it was signed..
    Were the goods insured? Was the loan insured, over and above the bank taking a lien on her home?
    If she had the loan and could not repay in time why did she not re-negotiate the repayment?
    I don’t think we have got all the facts.
    Finally, if her business was not on a sound footing, why did she need a big home, from all reports?
    It reminds me of one woman with a big loan from a credit union who could not repay. She pestered credit union bosses to extend the loan, in the meantime she was driving her 4×4 – living above her means.
    It is the Barbadian disease.

    Like

  • They care nothing about her equity in the property. If one of the f their friends have the money and find it attractive enough an offer they will take his/her offer once they recover the amount they need. If that is not the situation it goes on the market and remains locked down and deteriorates for the next five of six years unoccupied until they take the most suitable offer. When that happens she will probably be told she still owes them as they didn’t enough to clear the balance of the mortgage and then proceed to take legal action to recover the remainder. The banks/ bankers in this country are a despicable bunch that should be avoided.

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  • Well Well & Consequences

    That was indeed predatory lending by the bakn to steal that woman’s properties, as long as the process was ongoing, she was the fly caught in the trap and I understand that is exactly how the banks in Barbados operate with black people and their properties and have for decades.

    Like

  • Well Well & Consequences

    Had to do a little research but what the banksters in Barbados are practicing against the people is not banking, they are gangster banksters engaging in whole sale loan sharking, which should be a crime in Barbados….

    ……. no wonder the foreign banks refuse to leave the island, the thieves found themselves in the land of milk and honey…… weak people, most unknowing about their basic human rights and are not equipped to fight back, dishonest lawyers,, weaker compromised leaders, a weak and a compromised judiciary, what more could those banksters hope and pray for…that’s a loan shark’s paradise.

    The people on the island whose money cause these banks to be in existence can bring the banksters to their knees, now that it has all finally been exposed.

    Like

  • Well Well & Consequences
  • @Hal Austin
    There are enormous opportunities for development in Guyana, if only they can rid themselves of the racist politics. Canada is a second rate country, which punches above its weight in the Caribbean
    +++++++++
    What a dogmatic statement from a supposed journalist. You don’t build up a country by tearing down another, Canada “punches above its weight” in the Caribbean because it established a Trading, Banking and cultural relationship with Caribbean countries many years ago. RBC has been in Barbados for 100 years and counting, Air Canada (formerly Trans Canada Airlines) has been flying an established route to Barbados for many years, Scotiabank expanded the area of consumer banking that helped many Bajans to own vehicles, travel, renovate their homes, educate their children and obtain mortgages, perhaps you don’t know how inaccessible money was to Bajans of a certain vintage.

    Sometimes one should stop and think Before “popping’’ off with idiotic statements.

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  • @ Sargeant who wrote “Sometimes one should stop and think before “popping’’ off with idiotic statements.”

    Austin’s statements are NOT idiotic. They are trumpesque.

    Glad to see you are standing on guard for our home and native’s land. lol

    Like

  • @Hal Austin November 21, 2016 at 3:53 AM “I know it is a Bajan habit to make fun of things they do not fully understand. Let us take Guyana: Guyana is bigger than England…more natural resources, including gold, bauxite, rice…”

    But Hal you were not comparing Guyana with the U.K.

    You were comparing Gyuana and Canada. Guyana does not compare with Canada.

    Canada is hugely, imcomparably rich in natural resources when compared with almost any country in the world, including Guyana. Canada has water, land, fish, lumber, precious metals, a long history of stable government AND a highly educated population.

    If you had said that Canada has a horrible climate I would agree with you 100%.

    I love the Guyanese, the Jamaicans, the Canadians, and the British (don’t know any New Zealanders) but it is silly to compare Guyana an an economic power with Canada.

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  • @Hal Austin November 21, 2016 at 4:05 AM “It is the Barbadian disease.”

    A Simple Response: It is the nouveau riche disease.

    Hal Austin November 21, 2016 at 4:05 AM “Many people think that if they come in to money…”

    A Simple Response: Truth is the lady has been very hard working. In her early years starting when she was 17 she worked at two jobs, clerical work with Light and Power, and a night job as a singer (a very good singer too) so yes she worked hard at 2 jobs for many, many years. She worked hard for her money, she did not “come into it” When an opportunity arose she opened a store Moods and Options, selling cosmetics, hair products, pretty hats, bags and shoes to a mainly female clientele. The service at her shop was excellent and the products were of good quality. However once an economy begins to contract the first things people stop buying are items perceived as luxuries…and her store was seen as high end, nice, but expensive.

    But she mortgaged her hard work…and the bank foreclosed on her lifetime of hard work.

    She doesn’t deserve this stress in her old age…but life is a b!t<h.

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  • Simple Simon November 21, 2016 at 3:37 AM “The contracting world…economy was entirely NOT Ms. Riley-Fox’ fault.”

    In fact it was mainly the fault the fault of the banksters of Wall Street. Ms. Riley-Fox is unfortunately just collateral damage.

    Like

  • @BaJan boy November 21, 2016 at 7:18 AM “it goes on the market and remains locked down and deteriorates for the next five of six years unoccupied until they take the most suitable offer. When that happens she will probably be told she still owes them as they didn’t enough to clear the balance of the mortgage and then proceed to take legal action to recover the remainder.”

    Then Ms. Riley-Fox should determine to juck First Caribbean International Bank. Now while she still has time and a lawyer working with her she should declare bankrupcy…then there is NOTHING left for the bank to go after.

    Like

  • @Hants November 21, 2016 at 10:42 AM “Austin’s statements are NOT idiotic. They are trumpesque.”

    So Hants, please explain for this simpleton the difference (if any) between idiotic and trumpesque.

    Lol!!!

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  • “The reality of the eviction belies the notion of “successful”, Banks ae not run on sentiment they exist as profit making entities that are answerable to Directors and ultimately shareholders.”

    Required readin for those who out of sentiment call for the re-establishmen of an indigenous bank obviously financed by taxpayers money for privilege taxpayers to feast on.

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  • Hal

    Aren’t insurance companies in Bim covered by re-insurance.

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  • In addition Canada has the highest rate of higher education in the world. 54% of the population aged between 25 and 64 has completed post-secondary education. For the U.S. the number is 44% for the U.K. 42% Barbados is not on that list, neither is Guyana. Sadly neither Guyana nor Barbados is likely to make that list in our lifetime. Sadly instead of expanding post-secondary education, including “universities as well as institutions that teach specific capacities of higher learning such as colleges, technical training institutes, community colleges, nursing schools, research laboratories, centers of excellence, and distance learning centers” we are contracting access to post-secondary education. We will live to suffer the consequences.

    https://en.wikipedia.org/wiki/List_of_countries_by_tertiary_education_attainment

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  • In Barbados we are still so poorly educated that people still don’t understand why they shouldn’t litter. We still have a long way to go. A long, long, way.

    I hope that we are not moving backwards.

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  • In addition the first rule of real estate is location, location, location. If you improve your house so that it is now valued at $1.7 million while the other houses at that location are valued at less than $500,000 then people with the money to buy a $1.7 million house are NOT going to buy a house in a neighbourhood with “poor ” people because the truth is people are class conscious, and Bajans (except me of course lol!!!) are likely more class conscious than most people.

    So nobody is going to buy that house for $1.7 million even though Ms. Riley-Fox and her valuer, and the bank’s valuer think that it is worth that.

    In real life market forces prevail.

    The house is only worth what somebody is willing to pay for it.

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  • I have acquaintances who have rental properties and they will say “my house is worth $X in rent per month.”

    So after 6 months of advertising, still nobody is willing to offer $X per month and the property remains shut up for years, and years and years (and the Chief Town Planner is worried about the number of shut-up houses in Barbados while both the private sector and the government continue to build more) While the wanna be landlord earns $0 per month from the property. Sadly one of these acquaintances is a trained economist (master’s degree from the LSE) fortunately he did listen to me when I told him “you have to rent the house for what somebody is willing and able to pay for it, you want $2,000 per month, well $1,500 per month is $1,500 more than the zero per month you are currently getting. Look if you advertise for $X per month and you don’t have a tenant after 30 days you have to lower the rent, by $50 or $100 or whatever it takes to get somebody to say yes.

    House rented.

    Marriage saved too.

    The Simple is also an informal marriage counselor. Lolll!!!

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  • Well Well & Consequences

    The lady is maybe kinda slow and more than likely honest, they woulda gotten a Trump-like juck from me years ago, they all admire Trump for that and will laugh at anyone in this ladies position cause they got to dragg her through the mud….nice guys and victims always finish last.

    Like

  • A reasonable comment Simple Simon.

    Like

  • Well Well & Consequences

    http://ow.ly/jZxq306o1Vc

    By the time Obama leaves office, Trump is likely to give Pence the presidency, let him be the one to drop dead from stress instead., what turmoil and chaos….lol

    Like

  • @Colonel

    Layne is the correct name. But he was called Jonesy. I had two friends who worked there. he had one son by his marriage and AA is an outside son that he acknowledged. AA was the accountant and also a builder and race horse owner.

    Like

  • I sympathize with Ms. Riley, but rather than going to court and wasting money, she should have sold the house for whatever she could get before it came to eviction. Then she could have repaid the bank and hopefully have a few coppers left. She also could have looked at bridge financing while the house was listed and pay the bank off. The bank cannot sell the house for more than it is owed plus interest and other selling charges.

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  • Well Well & Consequences

    The banks have a scam where they already have people lined up to buy the properties, even while the matter is in court, there is no one supervising or monitoring anything in Barbados, it’s a free for all where laws, rules and regulations only apply to the poorest, the majority in the society.

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  • @Heather

    As correctly stated by a few there are some gaps in the Riley-Fox story. Someone should assist her to document in detail how she ended up with FCIB foreclosing. A check of the bank’s website raises the eyebrow as to list of properties by FCIB to auction.

    https://www.cibcfcib.com/fcib/about-us/bank-sale-properties.html

    Like

  • “A check of the bank’s website raises the eyebrow as to list of properties by FCIB to auction”…..which eyebrow?
    a) the fact there is no auction per se, they all have asking prices
    b) there is no file for Barbados, even though the header reads “invites offers for the purchase of the properties below located in the Bahamas and Barbados.”
    c) that under Directors one Sir Alan Fields is listed as the Chairman of the BS&T, which ceased how many years ago?

    Caribbean websites are not noted for being timely or complete.

    Like

  • Sargeant November 20, 2016 at 6:58 PM #

    The reality of the eviction belies the notion of “successful”, ……………………….
    . …………………………………………………………..
    Mr Rollock of the Five and Ten Model Store was a successful business man.
    Mr James A Tudor was a successful business man.
    They both met their fates, similar to Mrs Riley-Fox.

    In many cases the reality of success , for many black businessmen, leads to “eviction.” one way or the other.

    Like

  • Is it a Caribbean website or Canadian.

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  • FCIB is a well known scam bank with (formal or informal) insider scams designed to separate gullible customers from their assets. It got worse after they acquired Barclays.
    Bushie knows this first hand…
    But Bushmen don’t mek dat kinda sport…. as they found out.

    Like

  • @Blogmaster
    Good question. It is registered differently from the Canadian sites, but as to where the content emanates from, I have no idea. I doubt they have a global clearing house…or maybe they do.

    Like

  • @David re you post. I will reach out to Ann.

    @ Charles Skeete First Caribbean has sold 1.5 billion in real estate debt through out the Caribbean for 250 million to a Syrian family. This is not making something else not a profit.
    There is something fishy going on.

    Like

  • Well Well & Consequences

    As I said…..it’s well known the banks on the island line up their personal buyers for auctions long before the mortgage defaults, this is just a scheme to steal property from unsuspecting clients as soon as there is an inevitable contraction in the economy.

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  • It should be illegal for a repossessed property to be sold for less than the market rate, not for the outstanding sum owed.
    What we get in Barbados are these secret deals in which the banks – they are mainly banks – auction the property to their favourite partners for the outstanding sum – usually in cash.
    In the meantime they also claim on the mortgage indemnity guarantee cover, say for 75 per cent of the loan. So, it is very profitable for the banks (lenders) to repossess property.
    The equity that has built up in the property goes to the new buyer. The loser is the former owner.
    This is theft. In a culture dominated by lawyers why does this dishonesty continue?

    Like

  • Well Well & Consequences

    “This is theft. In a culture dominated by lawyers why does this dishonesty continue?”

    It’s a culture dominated by thieving, dishonest lawyers, who work bpth sides against the middle and benefit financially firom all sides.

    Like

  • “The contracting world/Barbados economy was entirely NOT Ms. Riley-Fox’ fault, but the fact that she had a large new mortgage in a contracting economy left her with no wiggle room and the bank pounced (or waited patiently for 4 years)”

    These words from the
    It is clear that Mrs Riley -Fox in her desires to satisfy her wants and not her needs allowed the trappings of Vanity to overrule her commonsense and has fallen into an abyss of her own making and now left to cry wolf wolf. There is no doubt that banking institutions are high profile predators and I have no wish to defend their vulturistic methods of operation which in this instance is all about collecting what is owed to them as agreed to in their favour. Mrs Riley-fox should be easily able to sell the house if as she says it has that much worth and pay off the bank and keep the remainder.

    Like

  • @Hal

    Surprise you have given your ‘mouth’ such liberty and the full facts of the Riley-Fox matter is not known. In fact you commented above that you agreed there are gaps in the story.

    Like

  • All banks are generally vultures that prey on the vulnerable and weak – as is the wont of such birds.
    But FCIB is more than that. They are dangerous snakes – or at least they are infested with snakes, who SET OUT to entrap even those who, with guidance could succeed.

    Bushie was personally disgusted with similar attempts which they made in a matter involving bush property, while assuming that the bushman could be located among the vulnerable….

    LOL…Bushie walks softly, but carries a big-ass whacker….

    Ff’ers !!!
    They are lucky that Bushie did not refer the matter to his step father yuh!!!

    Like

  • “Mrs Riley-fox should be easily able to sell the house if as she says it has that much worth and pay off the bank and keep the remainder.”

    the KEY fact most are missing. The GAP is the difference between monies claimed to be owing and the market value. If there was any amount of equity, of course the owner would sell?

    Like

  • @NorthernObserver

    Also if the bank has a lien on the property it is not Riley-Fox’s decision to sell.

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  • David,
    I pointed out that the facts as known were not clear. I don’t think they are levelling with us. I still believe that. I believe the woman should have sought professional advice – a financial adviser, a business consultant, or even lawyer to look at the agreement.

    Like

  • My other point was a general point about business practice in Barbados. I can give an example, but will resist it.

    Like

  • What we need to understand is if the bank extended a temporary overdraft or if the $300,000 was advanced on an adhoc basis. If it was adhoc to fund stock this is where Riley-Fox would have exercised poor judgement. IF is the overdraft was not casual then this opens another discussion. We need more information. Some of us who run businesses would then be in a better position to offer constructive comment.

    Like

  • @Blogmaster
    Why can’t the owner sell if there is a lien? The demands on the title just have to be satisfied in order of 1-2-3 etc. These “may” exceed the proceeds, just means the holder with the lowest priority gets less. The lien is just a claim against the title, which prevents the owner from selling without settling outstanding debts.
    If the claims against the property exceed the value, obviously those of lowest priority may not wish a sale, for they could end up with nothing. But the lien expires at sale, it does not transfer to the new owner, even if unsatisfied.

    The thread author posted “sold 1.5 billion in real estate debt through out the Caribbean for 250 million”. One must understand DEBT means ALL monies owing, not the market value of the underlying asset. A $300,000 mortgage (loan) can quickly grow well beyond if payments cease. So the DEBT is growing much faster than the value of the underlying asset (the property). When the mortgage is in arrears, frequently so are the property taxes and utility bills. In many cases one finds several mortgages.

    So 1.5 billion in DEBT, may only have underlying assets worth $400 million. And now the new debt owner has to collect or begin foreclosure. The DEBT itself is not title. It is a messy and expensive process.

    As we have seen on this short thread, the lender gets the blame. One good reason to sell debt, even at a discount.

    Like

  • @NorthernObserver

    If the mortgagee has first charge on the property how can the mortgagor act? Please be clear using explanations for dummies.

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  • If the mortgagee (lender) has first charge (first lien position, meaning they get paid before all other charges) on the property how can the mortgagor (borrower) act?

    The borrower is the property owner. They can sell whenever they wish. At closing, the lawyers are required to settle all claims in a specific order, and after settlement, whatever funds remain, if any, belong to the property owner.

    The matter gets more complicated where there are multiple claims (liens) against the property, and where the selling price will not cover these claims.

    When I said messy, there is frequently a legal battle for position. Also cases where somebody appears and has a document where the owner borrowed money and ‘pledged the house; as security. But if this lender did not register their position legally, they are out of luck. Even if their loan was say prior to a second mortgage, if the second mortgagee did not know of this loan, how can the lender of the $100,000 now ‘jump ahead’.

    Why the Land registration office of which Ms Beckles speaks so often, is so vital to any economy.

    Like

  • Thanks, that was clear.

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  • It is so disappointing to see how the bank have treated my aunt and so many others. She have been a single mom for so many years and yet she found a way to start her own business. For quite a while, her business was successful and opened job opportunities for many in Barbados. However, when business sales slowed down at her Bridgetown location, instead of giving-up she attempted to open another store in Holetown. Thus, the bank blocked access to lending her funds that would have rescued her business, open more job opportunities, and repay the bank loans. Although things seemed hopeless for my aunty, she never gave up. Since then she has been battling her way back to where she could payoff her bank loans and rescue her home from their clutches. There is not a quitting bone in her. Since loosing her businesses in Bridgetown and in Holetown, she opened a restaurant and a resale shop with help from her friends and others who loved her. My aunt is not getting younger and although she worked so heard for so long, her ability to retire when she chooses to or when it chooses her, is questionable. Aunty Ann has been the backbone of everyone in our family. She is deeply loved by all of us. Yes some of us show love in strange ways but it we are no different from any other family. Aunty we love you and want the very best for you, as you want for us. Many of us would not be who we are; or, where we are if it wasn’t for you. We are continually praying for you. May God continue to bless you.

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  • This behavior is not unique to Barbados or against women or Blacks. I reside in St. Kitts and the outdated civil laws see many persons loosing their homes or even thrown into jail because they cannot pay an outstanding debt and mind you, the debt still remains to be paid even after serving time incarcerated. It’s the laws that need to be repealed but I personally believe that the lawyers like it this way for them to make as much money as they can.

    Like

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