Aruba Is My Island HomeAbout Aruba Banking: QuestionsAruba’s Banking System. Is it an Illegal fixed Monopoly?Why are fixed interest rates in Aruba at 8% for home loans with 30 to 40% downand a personal guarantee also attached to all home loans whilethe interest rate inHolland is at 4%?How is it there are no particular rules for the sale of the troubled assets whereBank employees are able to then buy these discounted foreclosed homes or autossometimes as low as 30% of the estimated value?In that atmosphere it seems like the Bank can use those foreclosed assets as anincentive or payoff to employees to generate even more foreclosures pittingcommunity members against each other as the Bankers smile and get wealthy.If I work for XYZ Bank and want a house I just let it be known. When Juan’s housethat is in the troubled asset category goes on the auction block I as a Bankemployee get it as the bidding system is allegedly rigged in my favor by a Bankwho working under seemingly no rules can sell at whatever price they chose towhomever they please.This not only works for Houses but for cars also. Remember the Banks ask for apersonal guarantee always. You would think a 300K house that has 200Kborrowed against it would be sufficient collateral? Not so. If that Bank employeebuys the house the Bank sells it to that said employee below market valueallegedly as much as 70% claiming that’s all they can get.The next suspected move the Bank makes is to go after the personal guarantee ofthe borrower. Your wages and your spouses, existing assets such as cars,
property, investments, pension plans and anything that you have that can beturned into cash they are after. There is no real value in the Bank’s process ofclosing that loan down when they can garnish your wages for years with the nowtrumped up interest on that troubled loan. That interest rate now explodes to18% or 180 a year of every thousand you borrow plus added costs for theirtrouble to chase you down. Remember they allegedly make the rules as they holdpower and position allegedly over the politicians and courts in Aruba with theirsystem of taking care to have people that allegedly favor them in key decisionmaking positions throughout the system.You have not a clue of how entrenched they allegedly have become. In Aruba thecourts are allegedly working in favor of the power. The Bankers are the 800 Lb.Gorilla in the room and you probably stand little chance against their money,attorneys and position they hold within the community. Their attorneys are onretainer and using them in this manner allegedly has proven lucrative to theirbottom line.Car Sales and the advertised special deals aresuspected to be generally a trap. TheCar Dealers are working with the Banks. The Banks are looking for specificborrowers to help sell cars to. Many times it’s the younger crowd that gets caughtup in these alleged traps. You in your 20’s are a good risk if you have a job andparents that will co-sign your personal guarantee as the Bank then can go aftertheir assets in many cases. The house your parents have just about paid off asthey approach retirement could be on the auction block if you fail to keep up withyour payments. A 40K car discounted to 15 K and sold to the Executive director’sson at the Bank is the avenue to your parents’ house. Since you have nothing ofvalue they immediately go to your parents’ homestead to satisfy the outstandingloan. It is happening now in Aruba as the Courts and Banks are just conductingbusiness as usual.Here’s how it looks to be fixed.
1. There is no competition that brings those inflated interest rate numbers lower. They are a full 100% higher than in Holland.2. If you should get into trouble allegedly no Bank in Aruba crosses another Banks business. Let me repeat allegedly no other Bank steps in to save you. It’s there behind the scenes suspected unwritten law so they aren’t competing with each other. In that atmosphere the Banks are working allegedly together to guarantee that your loans will stay troubled and that there is little competition they have to worry about once they get your signature on that original loan contract.3. In that atmosphere the Banks win, the Car dealers win and those that are really the honest producers in the community become alleged prey to these suspected predators who are really taking your assets in a trap they have set for you.4. If you can’t pay cash for it you don’t need it. Stop buying stuff you don’t need with cash you don’t have and making these BANKS get rich off your misery.5. Banks have more power than any Institution on earth. In any case they can pick and choose whom to
lend money to and whom to deny. It’s alleged they are not looking for clear cut financially viable clients but those who have assets and collateral, with marginal ability to pay the loan or are entering into an alleged business trap where they can allegedly gain access to that collateral. If they are teamed with a business owner who has lease agreements that are considered illegal in Banking but there are no laws against those here you have the potential making of a heartache for the borrower and a windfall for the alleged perpetrators of this enterprise.6. JUST BE AWARE AND WARN YOUR NEIGHBOR