Are Banks allowed to change commercial loans ??

A strange matter and quick question.

Have Commercial property loans for a number of years with same Bank. Payments never missed and always on time. Interest and Capital repayments of 6% per year made every year. In 2009, Bank chose to reallocate the loans and terms, moving and changing balances. I was not advised until the end of 2010 when I noticed same whilst doing Tax return.

Can a Bank change terms and realign loans without asking customers permission?

Thank you for opinions.

They must adhere to the original loan agreement.

It is quite likely that they have a clause saying "these terms apply for 3 years only" which would give them the right to change the terms after that. However, they should have issued you with the new terms.

Brendan

The Bank in question view is that as they are providers of the loans they can do what they wish. They called previously for additional security due to the LTV clause and same was provided. I offered a different repayment schedule last December and same was rubbished although they are fairly emphatic that they are losing a fortune on this lending. Madness really -- the lunatics are running the asylum !!