GLASGOW, Scotland, March 26, 2014 /PRNewswire/ --
NAB owned Clydesdale Bank has seriously hurt Destiny Church's work with the homeless, disadvantaged and women suffering from domestic violence. The Church has incurred substantial 'break costs' on loans it claims were mis-sold by Clydesdale Bank sales staff. The net effect is that Destiny Church has had to severely curtail it's charitable work with poor and vulnerable people.
Destiny Church ironically owns Clydesdale Bank's former Headquarters in Glasgow which it now cannot afford to redevelop into a Community Centre, Church and Nursery. The loans sold by Clydesdale are thought to have earned the Bank many thousands of pounds in commissions and fees.
The loan products sold to the Church had hidden financial derivatives embedded in them and according to Professor Dempster, of the Centre for Financial Research at the University of Cambridge, an expert in Financial Derivatives, the type of loans sold to the Church and others were 'mis-priced and overpriced'. The Professor illustrates the case for NAB/Clydesdale Bank mis-selling in his presentation at the NAB Customer Support Group conference (ironically at Destiny Church conference centre in Aberdeen).
It seems that 60,000 of these 'toxic loans' have been sold by High St banks to UK businesses since 2001 and there is growing pressure on the Government to include these loans in a review process which has already seen another 40,000 'similar' loans under review by UK regulator, the Financial Conduct Authority.
It seems that Destiny Church and the people reliant on it's remarkable work may have to pray for a change of heart from Clydesdale parent, NAB, as there is a real possibility that the charity may have to make further cutbacks. The nub of the matter is that the Church is paying £5,500 per month more than it should be doing as a result of the mis-sold loans. The Church estimates its losses at £400,000, money it and Scotland's disadvantaged can ill afford to lose.
The support group helping Destiny Church, 'NAB Customer Support Group' set up by John Glare has provided the Church with expert help and advice from it's members who have also been mis-sold these loans.
Glare says 'some of our members have been bankrupted by NAB owned Clydesdale and Yorkshire Bank's actions, they are destroying peoples lives; seeing what has happened to a charity is really beyond comprehension.'
John Glare continues, 'I guess that at many people helped by the Church's charity had nothing, and they still have nothing.'
The Glasgow and Edinburgh based charity says specifically;
- 2,000 people have gone hungry as our food banks have run dry,
- 2,500 of Scotland's youth have not been reached, helped or cared for, due to loss of youth workers not being employed,
- 150 people have been made homeless as our hardship funds ran dry and we were not able to help,
- 2,000 vulnerable ladies facing domestic abuse or drug/alcohol addiction - not helped because funds were not there to expand our 'LifeLine program' which supports them
- 2,500 kids not supported through our kids programs as no funds to pay for kids workers' salaries
- 300 families not received professional counselling support as no funds to pay for professional counsellors.
According to Destiny Church, the Clydesdale originally promised to gives them a response to their ongoing complaint with the bank before Christmas, now nearly 3 months on and another £17,500 in additional payments, it seems that the Church's destiny is not looking too good.
About NAB Customer Support Group (NCSG)
The group was set up to help customers of NAB owned Clydesdale and Yorkshire Bank who were mis-sold fixed rate loans embedded with financial derivatives. NCSG is lobbying the UK Government hard to get these loans 'reviewed' and compensation paid.
NCSG Website http://www.nabcustomersupportgroup.org
Media: [email protected]
SOURCE NAB Customer Support Group