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What exactly is business bank account auditing?

This service, not to be confused with bank account charges, involves auditing corporate bank accounts for interest overcharging.

 

There are several simple reasons why ALL bank accounts will be wrong. Firstly, Banks take four or five days to clear payments made to an account but this is incorrect. All Banks have agreed that payments should clear in 3 working days, NOT 4 or 5. For companies operating within an overdraft, the result of this is an overcharge of an extra day or two of debt interest. Even worse, if the company has exceeded its overdraft limit at any time, there will also be a charge of penalty interest at a greater rate again which will be charged for 4 or 5 days instead of 3, compounding the mistake above. Thirdly, in many cases, the Bank charges themselves are incorrect due to human error or systems error and this had a detrimental effect on the account balance and once again adversely affecting the rate of interest being paid.

 

All these mistakes above have a DAILY IMPACT on an account balance so every day the mistake is getting worse.

 

Finally, all the time your account balance is wrong, the auditing software has the in-built facility to calculate the correct balance and it charges the Bank interest on the money that SHOULD have been in your account, but wasn’t because their figures were wrong, compounding the discrepancies still further.

 

So, as you can see, due to this simple error on the Banks part, 99.9% of all business accounts are incorrectly managed by the Banks themselves resulting in an ‘overcharge’.

 

After a 12 year period of auditing bank accounts, and not one being found to be correct, we can confidently say that ALL BUSINESS BANK ACCOUNTS WILL BE WRONG.

What is involved?

We collect all the relevant information which is processed by software which looks at every single transaction that has gone through that account(s) and calculates the errors. Once the overall error has been calculated, which is usually many thousands of pounds, amicable negotiations take place with the Bank in question to reach a settlement figure.

 

The actual audit itself is carried out by 3 separate members of a team who all work in isolation from each other.  All three audits must arrive at the same calculation with regards to the error.  This not only gives us an assured quality control but also gives you a TRIPLE GUARANTEE that the audit is accurate. 

 

When auditing an account, we can go back as far as 1980 if there are sufficient records, but as UK companies are only required to keep records for the previous 6 years, most audits carried our are for that 6 year period. 

What to do next?

If your company’s debit interest bank charges are in the region of £650 per month or more, then your bank account(s) should definitely be audited.  It is companies such as yours that will have been significantly overcharged by the Bank on your overdraft/loan facility and therefore makes it financially viable to audit. 

The process is very simple.  We need to collect the following documentation:

1. Original offer letter or facility letter
2. All bank statements.
3. All correspondence detailing any variation of terms.
4. Notification of any interest rate changes.
5. Full payment of the audit fee with signed T&C’s

If any of the above is missing, you can request copies from your Bank.

 

We will also need a cheque for the initial audit fee.  The audit fees are £375 + VAT per year of statements that are being audited and we encourage you to opt for at least a 6 year audit.  Additional accounts are £175 + VAT per year.  As you know, companies have to keep the last 6 years records, so it makes sense to do a full audit of all available years. 

 

Please note: You are within your rights to add the above fees to any amount we reclaim from the Bank. 

What Happens Next?

1. Once we have received your documentation, the audit will be completed within approximately 8 weeks
2. You will then be informed of the overcharge
3. All negotiations with the Bank will be undertaken on your behalf. It usually takes only 8-12 weeks to reach a settlement figure.
4. Generally, the Banks pay the settlement figure directly into your account.
5. You will then be invoiced in respect of the final fee which will be 30% of the amount recovered 

If you have any further questions regarding the process please email your questions to enquiries@loanresolutions.co.uk

Please note: LOAN RESOLUTIONS is an Intermediary of BCALC Associates. The 30% is a charged levied by the auditors and is their standard fee.