Since making our offer to Lloyds Bank at the beginning of July 2021, we continue to receive texts, letters and emails requesting “repayments”. I also received a letter dated 8th July 2021 from Damian Roberts, Group Executive Complaints, saying “I’ve looked into this for you… we believe we’ve acted appropriately“. There is nothing in his letter relating to the points raised in our offer letter.
On 12 July, I replied to Damian requesting clarification as follows:
Thank you for your letter dated 8th July 2021.
My understanding of the process is as follows:
- In granting the facility, Lloyds Bank digitally created an asset on its balance sheet representing the £50,000 credited to our account.
- Over the 12 months since the money was credited to our account, the UK government has paid £1250.00 in interest payments to Lloyds Bank.
- When the money is repaid, be it now or in six years time, the asset of £50,000 is removed from the Bank’s balance sheet, i.e. the £50,000 that was created is then destroyed.
Please confirm my understanding is correct.
Since when the texts, emails and letters requesting repayment have continued to arrive. I sent a reminder email to Damian, attaching the letter above on 20 July but have yet to receive the clarification sought.
Consequently, I’ve now written to Gareth Oakley, Managing Director, Business Banking with copies for my local branch, the Board of Directors and the Business Banking administration centre in Brighton.
Please ensure copies of this letter go to all members of the Board of Directors.
I refer to the letter sent to Damian Roberts, in response to his reply to my letter to you of 1 July 2021, dated 12 July 2021 (enclosed) in which I asked for clarification as follows:
My understanding of the process is as follows:
- In granting the facility, Lloyds Bank digitally created an asset on its balance sheet representing the £50,000 credited to our account.
- Over the 12 months since the money was credited to our account, the UK government has paid £1250.00 in interest payments to Lloyds Bank.
- When the money is repaid, be it now or in six years time, the asset of £50,000 is
removed from the Bank’s balance sheet, i.e. the £50,000 that was created is then destroyed.
Please confirm my understanding is correct.
In spite of this request for clarification, I’ve had no response to date and yet continue to receive texts, emails and letters from Lloyds Bank demanding repayment.
I sent a follow up email to Damien Roberts on 20 July 2021 as follows:
“I’ve yet to receive a response to my letter attached to my previous email and
below.
In the meantime, I have today received a text message from Lloyds Bank asking me to make a repayment. In the conclusion, it said to ignore the message if we have been “in touch”.
The fundamental nature of the facility provided is in dispute and it is inappropriate to attempt to take repayments while this fundamental issue remains unresolved.“
As my letter to you dated 1 July 2021 lays out, the bank provided the facility to create £50,000 out of thin air but we, in requesting the facility, are the originators of the £50,000.
Consequently, we thank the bank for the facility out of which the bank has already profited to the tune of £1,250 and our offer of an additional £500 ex-gratia payment in full and final settlement still stands.
The offer is more than fair and reasonable because Lloyds Bank has committed no capital and the automated nature of the facility means that the associated costs, spread over the total amount of money created by Lloyds Bank and its customers, are only a fraction of the interest received from the UK Government in the first year.
The nature and effects of money and banking are obscure to most people, including bankers.
Why have banks been the sole beneficiaries of the rewards for creating money from nothing?
Banks can only create money because of our need for money. Without our need, they couldn’t create the money.
