EmeraldVapin
Registered User
- Messages
- 1
We have come across a slight roadblock in our dealings with our bank.
It works like this.
Every time we ask for a bank facility such as an overdraft or debit cards or credit cards or anything that will allow us to carry out normal business transactions we seem to be asked to demonstrate that our business is somehow licensed to produce its products. The last conversation we had resolved to my business partner threatening to move to another bank.
We produce a product that is not yet licensed. There is no Gov. Dept. that licenses it, no fees, no regulatory body and no application forms for licensing. There is also no legislation or even guidelines (which is terrible to be honest).
However on two separate occasions now we have been informed that we cannot have bank credit cards, or debit cards nor can we have an overdraft or any form of credit or even a way of spending our own money until we can demonstrate we are 'licensed' to produce the product. The best the bank could do was provide us with checkbooks. In the case of the overdraft situation we just got along without one. But we were told outright that the bank was worried about the product not being regulated and wanted us to be regulated when no regulations exist.
Is it perfectly okay for a bank (or any business for that matter) to make it a stipulation of normal trade and use of services that you provide something to them that is simply not possible and both parties know its not possible? Is this even legal? Being turned down for a service because you are asked to supply something that cannot be attained and does not exist?
To date we have therefore been moving money in and out of bank accounts, buying goods ourselves with our 'personal' credit and generally doing everything we can to buy raw materials.
It works like this.
Every time we ask for a bank facility such as an overdraft or debit cards or credit cards or anything that will allow us to carry out normal business transactions we seem to be asked to demonstrate that our business is somehow licensed to produce its products. The last conversation we had resolved to my business partner threatening to move to another bank.
We produce a product that is not yet licensed. There is no Gov. Dept. that licenses it, no fees, no regulatory body and no application forms for licensing. There is also no legislation or even guidelines (which is terrible to be honest).
However on two separate occasions now we have been informed that we cannot have bank credit cards, or debit cards nor can we have an overdraft or any form of credit or even a way of spending our own money until we can demonstrate we are 'licensed' to produce the product. The best the bank could do was provide us with checkbooks. In the case of the overdraft situation we just got along without one. But we were told outright that the bank was worried about the product not being regulated and wanted us to be regulated when no regulations exist.
Is it perfectly okay for a bank (or any business for that matter) to make it a stipulation of normal trade and use of services that you provide something to them that is simply not possible and both parties know its not possible? Is this even legal? Being turned down for a service because you are asked to supply something that cannot be attained and does not exist?
To date we have therefore been moving money in and out of bank accounts, buying goods ourselves with our 'personal' credit and generally doing everything we can to buy raw materials.
