Bank of Dave.Anyone used?
Discussion
ghamer said:
Watched this chap on tv this week and must say I was really impressed.Apparently they pay 5% interest on deposits but not sure if they have the same guarantees in place as the big banks.So was wondering if any of you guys have used them yet.
I've not used it but it mentioned on the program that all monies paid in are guaranteed by himself as well an insurance company.Was this a repeat of the programme that was on about a year ago?
If so, i sem to recall that he wasnt allowed to call himself a bank and he was nowhere to getting a banking licence.
For starters he doesnt have banking experience nor the capital.
I think he had to settle as a credit mitual iirc
If so, i sem to recall that he wasnt allowed to call himself a bank and he was nowhere to getting a banking licence.
For starters he doesnt have banking experience nor the capital.
I think he had to settle as a credit mitual iirc
Fat hippo said:
Was this a repeat of the programme that was on about a year ago?
If so, i sem to recall that he wasnt allowed to call himself a bank and he was nowhere to getting a banking licence.
For starters he doesnt have banking experience nor the capital.
I think he had to settle as a credit mitual iirc
It wasn't a repeat, it was an update one year on and his fight with the FSA to operate as a bank.If so, i sem to recall that he wasnt allowed to call himself a bank and he was nowhere to getting a banking licence.
For starters he doesnt have banking experience nor the capital.
I think he had to settle as a credit mitual iirc
Officially Burnley Savings and Loans (small letters), with the slogan 'Bank on Dave!' (big letters).
Savings are supposed to be 100% protected by insurance.
In reality it works like Funding Circle etc. - your money is used for a specific loan for a set period and you get a cut of the interest payments. The difference being rather than you choosing who the money goes to Bank of Dave does. This is how they got around the not being able to be a bank - the thing that makes you a bank is everyones savings are grouped together, if you can track every saving individually and who it is loaned to then you just need a consumer credit licence.
Savings are supposed to be 100% protected by insurance.
In reality it works like Funding Circle etc. - your money is used for a specific loan for a set period and you get a cut of the interest payments. The difference being rather than you choosing who the money goes to Bank of Dave does. This is how they got around the not being able to be a bank - the thing that makes you a bank is everyones savings are grouped together, if you can track every saving individually and who it is loaned to then you just need a consumer credit licence.
BliarOut said:
No wonder the other banks don't like him if he offers 5% 
He also gives all the profits to local charities as well lendong to local businesses, which the traditional banks have knocked back.Apart from the charity thing, he's just doing exactly what the banks used fo do before they decided they wanted world domination.
QBee said:
Perhaps I am getting old and jaundiced, but three words spring straight to mind:
Ponzi
Barge pole
He personally guarantees all the money. Which investment products wither funds or hedge funds will personally guarantee your money? Hell not even banks guarantee your money ,its the government that do.Ponzi
Barge pole
I cant see why it would be a ponzi scheme he only lends what they get in deposits where actual banks are ponzi schemes they lend money that doesn't exist ie multiplier effect .
He gives all the profits to charity and is independently rich so doesnt need the money anyway.The fact he has had national campaign and become very aware in the eyes of the public. He alos only focus on his home town and ts wear he lives .
Every fact shows this is the opposite of all the criteria's that might be a ponzi scheme.To be honest your post is bazaar
Bandit said:
jonny70 said:
I cant see why it would be a ponzi scheme he only lends what they get in deposits
What happens if someone default's on the loans? Who takes the loss?Dave underwrites the losses himself.
garyhun said:
Bandit said:
jonny70 said:
I cant see why it would be a ponzi scheme he only lends what they get in deposits
What happens if someone default's on the loans? Who takes the loss?Dave underwrites the losses himself.
I am not saying it IS a ponzi scheme.
But the single main characteristic of such schemes is the abnormally high interest levels paid.
It works like this. The scheme is advertised, keen (greedy) investors lob cash at the scheme, the operator does what he likes with the money, for example loans it out, uses some of the capital to pay interest, has expensive holidays with it, pays interest by raising more funds etc etc. It only falls down when it gets audited or the whole thing collapses.
And if it is not a bank, then it is not regulated (stop laughing!!) by the bank regulators.
"If it looks too good to be true, it probably is"
However, it is about time that someone closed the gap between the interest rates the bank charge and the rates they pay. All power to his elbow if everything is above board.
But the single main characteristic of such schemes is the abnormally high interest levels paid.
It works like this. The scheme is advertised, keen (greedy) investors lob cash at the scheme, the operator does what he likes with the money, for example loans it out, uses some of the capital to pay interest, has expensive holidays with it, pays interest by raising more funds etc etc. It only falls down when it gets audited or the whole thing collapses.
And if it is not a bank, then it is not regulated (stop laughing!!) by the bank regulators.
"If it looks too good to be true, it probably is"
However, it is about time that someone closed the gap between the interest rates the bank charge and the rates they pay. All power to his elbow if everything is above board.
Having watched the original series, and now the update, the only reason he isn't a bank is due to the bar for a banking licence being far too high and only geared to large institutions. He has repeatedly lobbied MPs for a way to turn his business into a bank and for legislation to support local lenders using his model. You pays your money you takes your choice and all that, but I don't see it as being anything dubious.
Having looked at the website, the only thing I suspect may trip people up is this :-
16. Do I have to pay tax on the money I earn?
Returns from lending through BS&L are paid without any tax being deducted. You should declare any interest on gains to HMRC on a self-assessment tax form or inform your local Tax Office.
Without wishing to denigrate the fair citizens of Burnley, some of the people making deposits don't strike me as people who would be comfortable with working out percentages, let alone dealing with HMRC.
Personally, I think his model is a great idea. Nothing wrong with local people supporting local business through a local bank. Might even help restore some civic pride.
Having looked at the website, the only thing I suspect may trip people up is this :-
16. Do I have to pay tax on the money I earn?
Returns from lending through BS&L are paid without any tax being deducted. You should declare any interest on gains to HMRC on a self-assessment tax form or inform your local Tax Office.
Without wishing to denigrate the fair citizens of Burnley, some of the people making deposits don't strike me as people who would be comfortable with working out percentages, let alone dealing with HMRC.
Personally, I think his model is a great idea. Nothing wrong with local people supporting local business through a local bank. Might even help restore some civic pride.
OtherBusiness said:
onesickpuppy said:
Search is working???
I have found if you just go to Google and type in "pistonheads <your search term>" it will often find what you are looking for, rather than using the search within the site.QBee said:
I am not saying it IS a ponzi scheme.
But the single main characteristic of such schemes is the abnormally high interest levels paid.
It works like this. The scheme is advertised, keen (greedy) investors lob cash at the scheme, the operator does what he likes with the money, for example loans it out, uses some of the capital to pay interest, has expensive holidays with it, pays interest by raising more funds etc etc. It only falls down when it gets audited or the whole thing collapses.
And if it is not a bank, then it is not regulated (stop laughing!!) by the bank regulators.
"If it looks too good to be true, it probably is"
However, it is about time that someone closed the gap between the interest rates the bank charge and the rates they pay. All power to his elbow if everything is above board.
Have you watched the programs?But the single main characteristic of such schemes is the abnormally high interest levels paid.
It works like this. The scheme is advertised, keen (greedy) investors lob cash at the scheme, the operator does what he likes with the money, for example loans it out, uses some of the capital to pay interest, has expensive holidays with it, pays interest by raising more funds etc etc. It only falls down when it gets audited or the whole thing collapses.
And if it is not a bank, then it is not regulated (stop laughing!!) by the bank regulators.
"If it looks too good to be true, it probably is"
However, it is about time that someone closed the gap between the interest rates the bank charge and the rates they pay. All power to his elbow if everything is above board.
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