Banks, insurance companies destroying generational wealth
Opposition legislator Ronnie Skelton has called for new measures to crack down on banks and insurance companies, which he claims are making it difficult for residents to build and transfer wealth to their loved ones.
Skelton said these institutions have predatory practices and fees that make it difficult for “a large percentage of the population” to maintain assets they inherit from parents or relatives.
“God forbid you and your wife disappear, and you transfer your house to your child. If they don’t have a real high-paying job, they can’t keep it,” Skelton said while speaking in the House of Assembly recently.
He said local financial experts often collaborate to find solutions when the country is facing international threats, adding that similar collaboration is needed to regulate banks and insurance companies to ensure they are serving BVIslanders well.
“It is scary transferring non-revenue-producing assets to your offspring. It’s almost impossible for them to keep it, especially with the banks insisting that you must have 100 or 85 per cent insurance. You can’t keep that (property). If you build a house today and don’t have a decent job, you can’t keep that property, pay your mortgage, maintain and pay insurance,” Skelton further explained.
Skelton also criticised banks for foreclosing properties when customers fall on hard times, saying it would be better to extend the life of the loan and increase the interest rate so residents can keep their homes that they’ve invested in over many years.
“If my mortgage is $5,000 monthly and you can reduce it to $2,500 and extend the loan over 20 years, I’d still be paying. There are some simple things that can be done, but I guess when the banks don’t like you anymore, they won’t try to help you to do this,” Skelton said.
He also drew attention to the declining number of small businesses in the territory that are disappearing because of the harsh economic climate. Though financial institutions are not the main cause, Skelton said they have a role to play in ensuring that businesses stay afloat.
He then called on the Minister for Financial Services and Premier Dr Natalio Wheatley to put a committee together to find solutions to address the many issues residents are having with banks and insurance companies.
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Can this happen if Hon Skelton becomes Premier?
I lost all respect for you Sir. The government is doing a poor job in almost all areas of our country yet because of your dislike for the new leader of the opposition you sat there and did not debate on behalf of the people. Then you turned around and abstained from voting showing that you are fine with the government ‘s performance. Then in the same sitting under other business you decide to say some of the same things that the leader of the opposition was saying. The fact that you can’t put your personal and petty feelings aside in the interest of the country and the people says a lot about you. I guess if you are not in charge you have a problem. ENTITLEMENT!
so others should stand up for themselves, and he and others should not. why go down a travelled road that was rejected before. Same thinking; same results – mark these words. Mather get back in line.
Generational wealth huh. Well, since you conceptualized and brought your BRIGHT IDEA of the ill-fated NHI on the people of these shores, to create a new revenue stream of generational wealth for your homeboys and gals in the medical and insurance sector that’s all you have to say?
You served how many years in senior posts and were in positions to influence change, but guess what? You guys play us all for fools and do nothing for that FAT paycheck. The BVI Treasury does NOT print money! You very well know that most of the bargaining powers Government had are now lost due to incompetent government ministers and you are a part of that equation.
Just throw in the towel now. Take your Geritol and chill out Mr. Aloof.
Wasn’t Ronnie rejected twice as the leader of PVIM during elections? Why go that road with him again? Some people seem to have selective memory. NDP lost in 2019 because of the badminded actions of Ronnie because he lost the party elections. The VIP would have never won if that didn’t happen and he is displaying that same badminded behaviour now.
It is you and your NDP group, as well as your past actions that have allowed this. But, in your defense, both parties (VIP and NDP) have done nothing to defend the people from these predatory enterprises, most of which your elite friends are Directors, of anyway. Or, you forget to mention that little point?
Don’t forget the criminal enterprise you started up too, called NHI! That should go down as your single greatest achievement in transferring wealth from a country, to your select few people friends. Kickbacks, I am sure were in order?
Skeleton.. Go sit Down…
I don’t got no respect for hoa members that are present but abstain from voting for any reason… it’s the most important thing you all do in there. All it shows is your personal feelings and emotions more important than your promise to the people. I not no fan of Natalio but if it’s between he and Skelton I rolling with Natalio especially after seeing Natalio run circles around this man when he was opposition leader trying to bring the same motion of no confidence he couldn’t support just the other day.
Hon. Skelton doesn’t understand how loans work. If you have a mortgage on your home, you will have property insurance (which is invaluable, as shown by Irma, to protect the asset in the event of disaster) and and you should also have life insurance. If you die with some of the loan outstanding, the loan is repaid by the life insurance and so the property can be transferred generationally without debt.
Generally, the BVI is cash poor and asset rich, so some people don’t have the cash to pay the insurance to protect their assets. That’s not the fault of the banks or the insurance companies. The solution is to sell some assets and generate cash, which will permit the assets remaining to be protected and maintained. Many local business people understand this and are flourishing. Hon. Skelton also knows this, but is perhaps playing dumb for political reasons.
ok bulgie, do the honors.
Ronnie, well said, if we don’t take control and get some strong Policies to keep these institutions in check, we are gone. It is for the same reason why our leaders of the 70s and 80s didn’t allow these institutions doing big business to come in.
The people who believed that politics is a popularity contest went and voted for people who don’t understand business and what it takes to drive an economy.
These companies are run, it is alleged, by racist agendas to destroy the people of this country. You can see by the blogs on different topics that there is an anti-BVIslander agenda.
We dropped the ball and our leaders are head foremost going into this one carribeban initatives following people who are drowning and grasping at straws . Where is our will to be independent in spirit and be different.
Both Hon. Skelton and commentor Hmm are correct.
Further, there is and has been direct correlation between banking policies, fees and practices and racist minds against the Virgin Islander.
Its threads can be seen throughout the business fabric of the country.
Such exist also the direct correlation between no more local extended family businesses in the textiles and other businesses and the ongoing practices of disenfranchising the local entreprenuer.
Wait, Mr. Skelton, home loans in this territory is not thirty years like here in the US Virgin Islands?
Please, please: CLARIFY!
setup a trust fund for the children and foundation, what ever business or land or asset transfer it to the trust fund and the foundation , take out life insurance on all the family members towards the trust fun, like the foundation own majority shares in any companies, ETF, stock , bonds, fractional panting, Bitcoin, then borrow against producting assets especially the one that have healthy cashflow every month on reinvest the casflow either by getting more stocks, EFT or the foundation then you wont have that problem
Where is our $5 million?
BANKS IN THE BVI DUTTY, DUTTY, DUTTY, PUTTY.
The banks and insurance companies in the BVI will shut down and leave this jurisdiction if the HOA restricts their business.
Hon, Ronnie Skelton is so right , both the bank and insurance companies are the big thieves in the BVI. The bank can insure your property for just what you owe them but when you get an independent insurance company to insure it you have to insure it for 100 percent of the value which can cost tens of thousands more. All that injustice should be be looked into.
Ronnie Skelton has finally given voice to a long-held concern: that our financial institutions, in their current form, are not preserving generational stability – they’re quietly unraveling it. What was once a promise of progress has become a mechanism of erosion, leaving families to navigate uncertainty where trust once stood.
The Republic Bank increased my interest rate to the tune of paying $5000 more per month. They said that was done due to them not increasing for a long time. Republic bank just started in this country a few years ago. If the prime rate changed, why they didnt increased the rate for everyone. Why only a selected few whose loans were coming close to their payoff date? Predatory I would say.
Ronnie need to cart his behind home. He has nothing left to offer in active politics. He desperately wants to be Premier because he believe he is Entitled.
I agree with Hon. Skelton. You can be three quarters of the way finished in paying off your house and then your circumstance changes for the worse. Do you think those banks would call you in and refinance the remainder of your debt to assist you? In oher places in the world, but here, no. We are a people who pay for our houses and once we have it we do not withhold and we pay early. The Banks are into making money, but nothing for us. No interest, no service, nothing. they are vultures and the insurance companies, well I have been trying to find an adjective tha I can use and be respectful but none comes to mind. All I can say is that they are trying to take our homes away. They have people to buy them it seems. Because $upwards of $12,000 a year for insrance is ridiculous. Ugly, banks and insurance, ugly, ugly, ugly.