Fall in financial failures welcomed

PRESS RELEASE
Bank Customer Action Collective

A recent report on Bankruptcies is welcomed by the Bank Customer Action Collective.

'Bankruptcies and company receiverships fell last year. Figures released by the Ministry of Economic Development show 3003 people were declared bankrupt 1n 1999, compared to 3224 in 1998. Company liquidation's across New Zealand fell 4.8 percent to 942'

It is the belief of members of this organisation that the decrease in Bankruptcies is a possible result from direct pressure on the Banking Industry since the formation 18 months ago of this lobby action group.

Since meetings, and correspondence with many officials and vital media pressure we have also noticed attitude changes from a few banks towards customer / bank relationship fallout. It appears that some bankers have taken advice and moved a little more cautiously in dispute cases along with Financial downturn.

Not all bankruptcies are a directly caused by banks but there is sufficient evidence to prove that Banks dictate largely in the rise and fall of many businesses. This dictatorship (as one example only)can come from the banks ability to cut overdrafts and cash flow without explanation.

Whilst it would be foolhardy to say that all banks have taken a softer line is is certainly definite that these decreases in financial failure must be attributed to the bank management's softening knowing that their behaviours are under fire.

Suzanne Baker - for the Bank customer Action Collective - (025) 325 491 0r (025) 265 0653

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