Banks and Bank guarantee's
Discussion
Arranging a Bank Guarantee on a project recently, not a huge amount (20k) so I just expected a small charge.
Lady at the other end explained that now they had to take money allocated for bank guarantee's from your account into a seperate account at the bank where you can't touch it. There is a generous arrangement fee of some £300 for doing this payable to the bank when the guarantee is set up.
The money in the 'new' account attracts no interest, but there is a commission of 2.5% p.a. for this facility.
Is it just me, or is this a complete rip-off?
They take your money to the value of the guarantee, put it into their own account, and charge you interest on it.
You pay them £300 for the paperwork.
Lady at the other end explained that now they had to take money allocated for bank guarantee's from your account into a seperate account at the bank where you can't touch it. There is a generous arrangement fee of some £300 for doing this payable to the bank when the guarantee is set up.
The money in the 'new' account attracts no interest, but there is a commission of 2.5% p.a. for this facility.
Is it just me, or is this a complete rip-off?
They take your money to the value of the guarantee, put it into their own account, and charge you interest on it.
You pay them £300 for the paperwork.
Rovinghawk said:
You don't have to use them; if you do then they name their terms.
Take it or leave it, unfortunately.
RH
Problem is its needed when you export large value projects so there is no choice.Take it or leave it, unfortunately.
RH
You have to have it, and the cost gets added to the job, which makes UK exports more expensive.
Just sounding off because every time I interface with a bank at the moment their incompetance and/or costs just p
s me off. 
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