Spanish banks are being hit hard as British expats do ‘a runner’ from Spain’s Costa del Sol and Costa Blanca with debt left running in excess of €1.5 million so far this year.
Spain’s banks are taking a hammering in unpaid debts as British expat traders lock up and run back to the United Kingdom.
As we reported last week, a high number of expat businesses are simply locking up overnight and heading home as trade and business dries up on Spain’s Costa Blanca and Costa del Sol.
Whilst landlords suffer lost revenues, it seems it’s the Spanish banks who are being the hardest hit as they step up protection procedures to prevent further losses.
A bank insider told the Euro Weekly News this afternoon how bad the losses are, he said:
“Bank losses on loans and overdrafts from British account holders with Spanish banks stand in excess of €1.5 million, the losses are not from just a few accounts, but many ranging from debts owed between 5,000 to 50,000 on average.
“We try and contact the customers and call at their businesses and registered home addresses, but we find the business closed down and the home premises departed.
“Bank bosses have sent out memos now to staff to watch carefully British account holders who are in the red, some of those who have disappeared have been customers for several years.
“We are also tightening procedures on all new accounts being opened, especially by the British.
“We do try and chase the debt and use British debt collection companies who visit the registered addresses we have on file for them in the UK, but in the majority of cases they are out of date,” he finished.
Doing a bunk and stitching up a Spanish bank is very easy according to former fraudster Gareth Childs who swindled a whopping eight million before being caught.
The now totally reformed Childs told this afternoon to the Euro Weekly News how Spanish banks are easy targets due to lack of procedures, he told us:
“If businesses are in trouble and dumping the debt then Spain’s banks themselves are only to blame, they have the laxest procedures in Europe quite frankly,” he said
“It’s all in my past now but I would imagine nothing has changed, anybody can just walk in, open an account and soon start running up debts and then just dump out on the account, unless you stay in Spain you won’t get chased normally, it would be rare if you do.
“I’m not advising people to do it, by the way, but I can see how expats are getting away with it,” Childs finalised.