“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
This quote is often attributed to Mark Twain (as are so many pithy sayings) but it can’t be verified. Nonetheless, it expresses the sentiment most people have about banks and bankers. They’ll happily lend you money when everything is fine, but once financial difficulty comes, they are the first at the door wanting their money back.
Banks are in the business of earning money. Just like everyone else, they do what they do with the expectation that they will receive monetary reward for it. So when they make a loan, that’s their stock in trade, so to speak, just like turning cars out of assembly lines is Ford’s stock in trade or filling teeth is your dentist’s stock in trade. There should be some satisfaction to the banker, the assembly line worker or the dentist for doing a job well, but in each case the provider of the goods or services expects payment.
The bank gets its monetary reward in the form of the interest that it charges on a loan. When payments aren’t made as agreed, the bank feels that it isn’t being properly recompensed. Besides, that money that it loaned you wasn’t really the bank’s: it belongs to all the depositors who have accounts at the bank, or it belongs to the Federal Reserve, from whom the bank borrowed the money it loaned to you. To ensure the safety of the bank’s depositors, laws require that banks take appropriate steps to collect loans. Sometimes this results in the bank acting in a way that the individual borrower might find less than kind.
So while it might seem very personal when the bank tries to collect from you, it really isn’t. It’s just business to them. If you have problems with banks or other creditors trying to collect, maybe we can help. Please contact us here.