A Manx business owner has raised issues over the protection to borrowers on commercial mortgages that have been taken out on the Isle of Man.
The concerns that have been highlighted all arose from a catalogue of irregularities within the mortgage facility on commercial mortgages that were taken out in the Isle of Man in 2008.
A source told Manx.News, that a high profile bank operating in the Isle of Man, not only used the incorrect interest rate, but also incorrectly inputted data which resulted in the mortgage overpayment.
The interest rates that were used were hidden within calculations, within the mortgage facility.
The bank was asked to verify the calculations used, but it did not agree to cooperate.
Overpayments on mortgages
In essence, the business was severely struggling to make the mortgage payments, but after an independent investigation in 2018, it was found that the business been had overpaying its mortgage, which had cost the client over one million pounds.
Upon uncovering the issue, the business went to the bank and highlighted the problem.
The bank refused to accept there was an issue.
Following this the business then fell victim to ‘aggressive bullying’ from the bank who refused to accept there had been any issue, nor accountability.
FSA ‘toothless’
Complaints were made to the Isle of Man Financial Services Authority (FSA) who failed to act.
The FSA have been described as ‘toothless’ when dealing with complaints against international banks.
The independent report suggests that the regulator (FSA) did not take any action, nor interest, and allows the banks on the Isle of Man to be self governing.
Investigation
Manx.News is interested to hear from any other commercial entity on the Isle of Man who may have experienced similar problems.
If you have experienced similar issues and want to get in touch please do so emailing newsdesk@manx.news
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