CIBC (First Caribbean International Bank) is again accused of oppressive behaviour by an average Bajan citizen. In a sixteen year long dispute between the McIntosh Vs CIBC the family has turned to social media, AGAIN, to seek justice in the court of public opinion.
CIBC (First Caribbean International Bank) is again accused of oppressive behaviour by an average Bajan citizen. In a sixteen year long dispute between the McIntosh Vs CIBC the family has turned to social media, AGAIN, to seek justice in the court of public opinion.
FCIB and the senior staff of that institution are a most unscrupulous bunch. I have a situation where they have applied the wrong interest rate on my mortgage loan since 2009 which has resulted in me being overcharged over $70k. Instead of collecting $240+k they collected over $310k and for the past 3 years they have been bringing all kinds of ridiculous arguments to avoid refunding what was illegally applied. Their legal department is a waste of time because the front line unscrupulous personnel including the CEO dictate the bank’s position without recognition of what is legal or illegal. They are a crooked bunch!
@John
How is what you posted possible?
Do you have official documentation to support the date the interest rate would have taken effect?
@David
Don’t the banks provide amortization schedules?
I have the same question but for a different reason.
That would be too ‘bol-face’…..One can easily go online, plug in the loan amount, the interest rate and the length of the loan and get the monthly payment. How could they try that? Perhaps there was a miscommunication somewhere.
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Would really hurt if your banker was a Quaker
@Sargeant
Based on personal experience the bank will confirm the rate based on type of mortgage. For example the mortgage rate usually is reviewed annually and documentation will be sent to the mortgagor to this effect with updated rate and installment. John should be able to produce a document to confirm his rate with the bank.
RBC
Amortized monthly payments of principal and interest can be granted for up to 15 years (maximum term and age of client not to exceed government age of retirement).
http://www.rbcroyalbank.com/caribbean/bb/personal-lending-solutions/mortgages/index.html
Here’s another case of nonsense from these people. My friend and her husband got divorced. She was awarded their house in the settlement. The judgement was that the bank should seek to attach one of the ex husband’s many assets as security for the mortgage. He even has another house. The bank was notified of the judgement. And yet they pursue the lady relentlessly, even going so far as to threaten to put the house up for sale. Every time she relaxes, thinking the matter is settled it rears its head again. And of course the interest is mounting. Last time they said the documents were not in the file.
I sent her to my attorney who advised her that it was their problem to solve. I told her she should ignore them and let them try to evict her.
@ Donna
How could the court award a house that is mortgaged to a bank to the exwife? Did they award the liability also i.e the outstanding mortgage payments?
The liability became the ex husband’s. The bank was to seek to recover from him. He has a much bigger house which he uses for offices. No mortgage on that one.
It is all in the judgement. I know she is not mistaken. Neither is my attorney. They both are quite capable of reading and understanding.
Vincent,
The amount owing is not even a large amount, I suspect, judging from the size and style of the house, the plot of land and its location. He could probably sell one of his vehicles and clear the damned thing.
@John
How could somebody with your mathematical skills OVERpay on a mortgage?
@Donna
Something is amiss. You began… the bank sought security on the mortgaged property which the lady now owned. Then you write the amount owing (outstanding mortgage?) Is not a large amount.
If the amount owing is small, the property itself, is the security. Unless there are ‘other mortgages’ or the property is used as collateral elsewhere, and the bank mortgage doesn’t have first claim against the property. (ie. It is a second or third mortgage; or another entity has a claim which is ahead of the bank
I obtained a variable rate mortgage in 2007, and the rate was only changed once from then until now and that was in 2009. However over the same period the prime rate has reduced a number of times as well as their cost of funds with the rate paid on saving accounts having reduced from 5% then to 2.5% and then to 0%. So they have substantial widened their spread and not passed on the benefit of the reduced rates to me who have a variable rate mortgage. If rates had gone up over the period I would naturally have to pay the higher rates.
I suspect there are many people in my position who have not realised their rates haven’t been adjusted but simply continue to pay the monthly installment they always did. FCIB dont send statements on mortgages and I believe this is on purpose and even when statements are received they do not show the rate of interest being applied.
Because rates have consistently gone down in the last 10 to 15 years many people will continue to pay the same installment which they began with not realising that their rates are not being reduced or correctly reduced. When I first enquired about rate they insisted the rate was correct, then they made two compromise offers to give refunds based of lower rates but not the correct rates. I decline both these offers as I dont need to compromise I simply want the correct adjustment refund made. It is not like they will be losing money they should have collected $240k just not the over $310k they did.
If you went to Massey and bought a tin of cornbeef and it was rung in as $10 and you later return with the item and the bill and point out that the price should have been $8, they would refund the $2 case closer. These brutes at fcib are arguing all over their face that the changing of the rate is at their discretion, that my rate is not varied based on prime rate although the prime rate is outlined in the offer letter….. they are crooks. I urge all of you to look at your mortgage offer letters and see what they says and then enquire of that bank what rate you are being charged and if you have variable rate loan when over the history of the loan it has changed. If you have a mortgage loan with that bank, hide your name and address but send me copies of your offer letter to bajseri33@gmail.com. A local regulatory agency has taken the matter up and the more evidence they have of this company’s behaviour the better. Thank you.
@John
You have had a mortgage from 2007 and having not received a communication about the rate you didnât think to question it?
NO,
Absolutely nothing is amiss. Let me try again.
The wife and the husband got a divorce. The courts awarded the house to the wife and made the husband solely responsible for the debt. The bank was supposed to arrange to attach the debt to the husband who has many assets including another larger house from which he runs an established transport service.
I assume the amount owed may be less than one hundred thousand simply because of the apparent value of the property and the length of time the mortgage has been in existence. The bank was instructed to attempt to secure the remaining amount due by way of his other assets since the property would now be solely in the possession of the wife. She was relieved of the debt. The bank was to make a new arrangement with the husband.
They took no actions towards doing this but instead harassed the wife. She was advised by an attorney that they could take no action against her. The last letter they sent advised her that they would be initiating the sale of the property. My friend directed them to the judgement AGAIN.
She has not heard from them in months. They have backed down again.
The problem seems to arise whenever a new person is assigned the account. Her attorney abandoned her after the extremely acrimonious court proceedings stating that she was tired of the whole mess and so my friend has not secured the release of the title from the bank. The process ordered by the court is incomplete.
Just wondering about the judgement, why is it up to the Bank to go after the spouse (husband) instead of the husband satisfying the Court that he has relieved the wife of the mortgage debt by attaching it to one of his assets or paying it off outright.
Sarge I have said it before.. if you think its confusing for banks and lawyers family is even confused if they get a divorce are they still brother and sister.
Sarge,
That is a good question to which I do not have a good answer. That would indeed be a better option. The enforcement of judgements is very lax in these parts.
We will NEVER get respect.
We will NEVER get JUSTICE
Until we remove with prejudice, all of the oppressors of the Born and Bred Black Barbadian Citizen.
Bussa showed us the way, walk we in it!
@John July 13, 2020 7:20 AM
Normally the interest rate is renegotiated every one, two or three years. Those who currently pay 5% interest are either not creditworthy or naive.
The interest rate at Scotia Bank is 3.75 %. With a downward trend.
In general, our natives have no idea about money business. In the north, states like the USA, Switzerland or Germany even make money when they borrow money! For example, 2% per billion USD gov bonds. If we were to restructure our entire national debt in this way, we would be at zero in 10 years.
The fact is that our creditors are ripping us off like bandits. No decent country is currently paying positive interest on its bonds. Therefore, it has always been my opinion to pay back the principal, but not the interest. In this respect, White Oak has also negotiated badly. Our creditors still earn too much.
@ Tron
If the interest rate on a mortgage (or loan) is variable there is no need for re-negotiations. The rate will be determined by the central bank ie base rate plus..
Tron it takes 2650 concrete blocks to make a 3 bedroom flat each block is around 4 bucks thats 10 grand so why on earth would you buy bonds when you can string a few blocks together put on a roof call them coverley and flog them at 200000 k ya gotta get into blocks not bonds
@Donna
Ok. The wife got the house LESS the existing mortgage.
In this country, title could NOT have been transferred, UNLESS the mortgage holder was provided with the required security, or the mortgage discharged.
The Court can order whatever they want. The mortgage holder will block the transfer of title.
@ Hal Austin July 13, 2020 12:32 PM
Normally, banks and debtors in Barbados agree a fixed interest rate for one to three years. After that, renegotiation is necessary.
Loans without such fixed interest rates are rather rare. In addition, the level for fluctuating interest rate in Barbados is currently less than four percent. So if John pays 5 percent, he should change his bank. Normally, competing banks cover the transaction costs. As far as I know, there is no prepayment penalty because there is no long-term fixed interest rate in Barbados.
@Tron
You are correct, has nothing to do with the central bank.
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@John
This may help.. Games can be played if the borrower is not careful. Following up on what Tron said. Could it be that they give you a 15/1????
“Each variable-rate loan has a specific time period for calculating the new interest rate. This period varies from loan to loan and could be monthly, every six months, once per year or even less frequently. Some loans keep the initial rate for a longer period before changing. For example, a 5/1 variable-rate mortgage keeps the initial rate for five years and then adjusts the interest rate once per year after that”
Perhaps you need to visit the bank with a dual purpose
(1) Get a refund of any money yo think they have taken, and, more importantly
(2) Try to renegotiate the loan or go elsewhere
And you thought… we didn’t care
@ Tron
I am not surprised. Normally, lenders set the variable rate as the base rate plus. If the base rate changes the variable rate changes. It can sometimes be based on the interbank lending rate plus. A fixed rate is set for a determined period regardless of movements of the base rate. A tracker rate is one that ‘tracks’ a benchmark ie the base rate.
What does this mean? How does it apply to the Barbados market? You always think you know yet you know not.
Bank Rate is the single most important interest rate in the UK. In the news, it’s sometimes called the ‘Bank of England base rate’ or even just ‘the interest rate’………..
Bank Rate determines the interest rate we pay to commercial banks that hold money with us. It influences the rates those banks charge people to borrow money or pay on their savings.
If Bank Rate changes, then normally banks change their interest rates on saving and borrowing. But Bank Rate isn’t the only thing that affects interest rates on saving and borrowing.
Interest rates can change for other reasons and may not change by the same amount as the change in Bank Rate. To cover their costs, banks need to pay less on saving than they make on lending. But they can’t pay less than 0% on savings or people might not deposit any money with them.
This means that when Bank Rate comes close to 0%, how far banks pass it on to lower saving and borrowing rates reduces. And as Bank Rate starts to rise away from close to 0%, that’s likely to lead to less of a rise in saving and borrowing rates…(Quote)
One way that interest rates matter is they influence borrowing costs and spending decisions of households and businesses.
Lower interest rates, for example, would encourage more people to obtain a mortgage for a new home or to borrow money for an automobile or for home improvement. Lower rates also would encourage businesses to borrow funds to invest in expansion such as purchasing new equipment, updating plants, or hiring more workers. Higher interest rates would restrain such borrowing by consumers and businesses……(Quote)
Who sets the interest (base) rates?
The base rate influences the interest rates that many lenders charge for mortgages, loans and other types of credit they offer people. For example, our rates often rise and fall in line with the base rate, but this isn’t guaranteed. You can visit the Bank of England website to find out how it decides the base rate. Why does the base rate change?..(Quote)
What is the base rate?
It’s the rate the Bank of England charges other banks and other lenders when they borrow money, and it’s currently 0.10%. The base rate influences the interest rates that many lenders charge for mortgages, loans and other types of credit they offer people. For example, our rates often rise and fall in line with the base rate, but this isn’t guaranteed. You can visit the Bank of England website to find out how it….(Quote)
Hal,
The variable interest rate should actually be 2 percent because of the central bank’s zero interest rate policy. But you have to keep in mind with the profit of the banks that they will soon have to write off large sums because of the Corona crisis. Our government will not continue the debt moratorium forever.
However, the market interest rate for mortgages of 3.75 percent shows that our government has so far paid far too much money for the national debt. Anyone who pays more than 5 percent in Barbados is simply not creditworthy.
@ Tron
The banks charge what they can get away with. Where is the regulator?
NO,
I know that the title would not be transfered. As I said, her attorney abandoned her and she has hired a new attorney to ask the court to enforce the judgement.
The bank, however should not be harassing her in the interim. They cannot sell the house as they have threatened to do.
But it isn’t the mortgage holders responsibility to enforce the judgement?
What I will guess….is the mortgage isn’t currently being paid? Hence the bank will seek to remedy that. And they will be going after ALL parties who are Currently listed as owners and signatories to the mortgage. One of those is to sell the property to recoup the monies owed.
I suspect what you call harassment, is merely collections pressure.
The Bank could give a flying flamingo about ‘judgements’ for they are not party to that judgement. They want their money.
NO,
They always back down. That should tell you something. The problem occurs when somebody new gets the file.
@DonnaJuly 12, 2020 9:26 PM “He could probably sell one of his vehicles and clear the damned thing.”
I hate to tell you this Donna, but they are called ex-es is because that are unreasonable, uncompromising, unforgiving, will not give an easement.
Expect nothing good from an ex…
and ye will not be disappointed.
Donna, notwithstanding the court order if your fried can afford to pay off the relatively small amount owing on the mortgage she should do so. Doing is not the best legal or economic advice, but it is the best peace of mind advice, because it is not the ex being “harrassed” by the bank so why should he care? He can do absolutely nothing and let the interest pile on on the place where she NOT HE lives, and leave her to take the nasty calls from the bank. The bank’s calls don’t bother him. The bank doesn’t care all they are interested in is “gimme the money” and of course the courts are slow as molasses running up a hill. Did you not see in case on the front page of Saturday’s paper which took 15 years to adjudicate.
@Donna
The pedantic one mentioned on another thread about info coming out in divorce court. One mentioned was in the transport biz. Would it be a coincidence if they are one and the same?
Listen to SS, she understands life and it’s machinations.
I like longshots so I betting the ex-husband striking a bank employee or got some in at the bank. The bank don’t switch files fah so, it is being orchestrated.
NO,
I picked up on that DPD comment also. And I think you may also be right about the connections, now I think about it.
Cuhdear Bajan,
She is unable to pay. She invested most of her funds in the business that her husband now controls. He also cleaned out the joint account. He has also ignored the cash settlement he has been ordered by the court to pay. At her age and having only worked in her father’s business and the business she ran with her husband she finds it impossible to find employment. Her own business efforts failed because of the usual pressures. She now works for her brother whose business depends on the tourism sector.
Her only chance is to get the courts to enforce the judgement. Unfortunately she is too ladylike to make much progress. She may even find my posts here to be problematic.
Unlike me, she is a private person and like Justin she does not know how to be a pest.
She is still expecting that people will do the right thing when they are reasoned with intermittantly and in private. No matter how many times I have shown her that my methods work better.
“High wind know where old house live.”
If he was my husband he would not have pulled that. He would have customers to pick up and no vehicles to pick them up with. I would have damaged every one. Of course, he could call the police and have me charged but then the details of what he did would be exposed. He likes to put up a front.
He would have paid up real quick!
Too often I see these things happening various companies and businesses , I’ve had my own negative experiences , for example Blades courier services , run by Alex Blades is a fraudulent operation , I am highly dissatisfied with the service . My requests for service are usually met with sexual harassment amongst other profanities .
Hal AustinJuly 13, 2020 2:53 PMWhat is the base rate?
In Buhbim the lending rate differs substantially from the deposit rate.
NorthernObserverJuly 14, 2020 12:20 PM
One of those is to sell the property to recoup the monies owed.
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Sale of property should be regulated, market value etc. This is a huge weak spot in legislation and supervision. We have all heard stories about property going cheap. This would be prevented by stiffer regulations on mortgages and property as I suggested some years ago. It would ensure that true market value would be reached. There is no way that the bank, with an interest, should be able to sell the property. It should be sold, via the Court, in a arms length transaction.
@Tron TronJuly 13, 2020 4:10 PM Hal, . But you have to keep in mind with the profit of the banks that they will soon have to write off large sums because of the Corona crisis.
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The write offs will be substantial. What they going do, repossess everything? That would go down nicely, NOT. Their head offices in Canada must be feeling the pain. Executive bonuses are based on net profit. Maybe they can (will try) defer the write offs, but that will not work for long.
Never mind, they made so much out of Barbados for donkey years, they can take this one for the team.
DavidJuly 10, 2020 10:39 AM Moral of the story, if yuh owee, owe BIG, as DT knows. That way, they cannot let you fail.
If you owe small they are on you like gravy on rice.
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