CAM Bank protests

More unhappy CAM Bank customers protest in the streets

ONE EURO was the nominal sum paid by Banco Sabadell to take over control of the debt ridden CAM Bank last month but hundreds of expatriates who purchased Bonds from CAM are still not having any luck in getting their money back.  In 2009 CAM Bank started to approach their valuable clients who had placed money into their investment accounts and offer them an even better deal, interest-earning Bonds. The return was a guaranteed 3% on the investment, redeemable at anytime, at least that was until people starting asking for their money back last summer!

A quick Internet search will bring up hundreds of forum comments and newspaper articles about the situation at CAM Bank. It was reported that the CAM Bank was bailed out by the Bank of Spain to the tune of 2.3 billion euros during 2011. The €1.00 that Banco Sabadell spent will not go far against the debt but it may give some fresh hope to Bond holders. High Court proceedings have also been started against former managers, and the former C.E.O of the CAM for corporate crime, fraud, and forgery, while everyday more tales of woe seem to hit the headlines around Spain. In case you have forgotten, the directors of CAM bank awarded themselves €12.8 million as compensation for losing their jobs!

At issue is that hundreds of expatriates on the Costa Blanca, have invested in €1,000 Bonds however they have been unable to access their money or savings held in the CAM Bank. Some of those whom we have been in contact with have only a few but at the other end of the scale, there are those who have more than 200,000 in Bonds! 

Local Torrevieja resident Bill Farnworth is but one of the hundreds of unhappy clients. He said “I requested to sell my bonds, on October 5, 2011 and was issued the "Orden de Transference" stamped by the Bank. Normally this process takes 3-4 days and the funds are deposited in your account. Three months later, I am still waiting to see my money!” He continued “Some people have been forced to take out a bank loan to pay the Direct Debits for electricity, water, etcetera, when the bank is holding their savings. This is a scandal, that needs to be brought to the attention of as many influential people as possible.”

Last week a few of Torrevieja’s main protagonists held a token demonstration outside the doors of Banco Sabadell main branch on Paseo Vista Alegre in Torrevieja, just to let the new owner’s management team know of their dissatisfaction with what is going on. In an attempt to put CAM on their back foot, Bill Farnworth did his research, found a property that he liked and offered to exchange the value of his bonds, plus additional cash if required, to purchase one of the thousands of repossessed properties that CAM have on their books, as a straight deal. After all, CAM already have his money, so what could be the problem. However, CAM basically laughed him off and refused to do such a deal, even though they are desperate to sell repossessed properties and during 2011 foreclosed on over 8,000 properties, which now lie empty! They did however offer him a 100% mortgage, should he wish to purchase something new!

After winning the award for CAM Bank last month, the chief executive of Banco Sabadell, Jaume Guardiola made it very clear that their main thrust is to regain the trust of customers and the collaboration of the workforce. About the takeover he said “The main reason is that for us, this is an opportunity for growth with a larger entity, called a transformational operation, a change of significant size. It is obviously an operation that had to be protected in two major structural risks: One is the loss generated by excessive exposure to real estate and the other is the liquidity situation.”

Alan and Olivia Rogers were also protesting outside the bank and although they hold little hope of receiving their money they invite others in the same situation to contact them about their issues with CAM Bank, which you can do by email on: alanrpm@gmail.com. The latest news is that it will be at least March before the takeover and reorganization of CAM will allow them to start returning the cash value of the Bonds to clients. In the meantime, the fight goes on as thousands of very unhappy CAM Bank customers continue to try and make ends meet while CAM and Sabadell hold onto money that is not rightfully theirs!

Keith Nicol