Question

A customer has an unsecured overdraft facility of $10 000 with an exposure of $11 000 and a mortgage of $400 000 on a house with an outstanding amount of $397500. The customer applies for increased overdraft facilities. Internal bank records indicate that frequent excesses occur on the existing overdraft and the mortgage bond in the personal name of the owner is two months in arrears. Further investigations prove that the customer lost an arm in an accident and is not able to continue with his previous career.

Question
Which one of the following persons within the bank would be able to provide the best advice about future prospects of the customer:

a. Insolvency practitioner

b. Credit specialist advisor

c. Trust advisor

d. Financial planning advisor

e. Health services advisor

Answer 1

Answer ) B) Credit Speacilist Advisor

SOLUTION

A credit speacilist advisor is responsible for the bank's or financial instiution's underwriting needs which involve processing, analyzing and completing the financial and risk analysis on loan requests or increase in overdraft facilities for individuals.

Option A) is incorrect becuase Insolvency practitioners acts as liquidators for companies or individuals which have become bankrupt They advice both companies and business on liquidation matters.

Option C) is incorrect because the role of a Trust Advisor is to review the financial records of the trust and ensure that the trust is being administered as per utmost care. Acts as a neutral third party for a trust on behalf of both the beneficiary to the trust and its trustees.

Option D) is incorrect because Financial advisors provide advice to the client on how to invest their money and maximise their return for a given level of risk.

Option E) is incorrect because Health Service Advisors provide customer service and advice to patients needing medical attention.