13 March 2015
On the 10th of March the House of Commons Treasury Select Committee (TSC) published the long awaited report on “Conduct and Competition in SME Lending” – Seneca Banking Consultants provided evidence to the TSC in preparing this report and is directly referred to. Seneca is referred to in the report, and Director Tim Murphy, attended the TSC and gave evidence as a witness. Our submissions were used in reaching the conclusions in the TSC Report.
Within this long awaited report the TSC reported on the conduct of the banks in relation to the mis-selling of Interest Rate Swaps – in particular the TSC is highly critical of the way in which the banks and the Financial Conduct Authority (FCA) have allowed the Review to deal with SME’s that have fallen victim to these complex and business destroying financial products.
The Interest Rate Hedging Products, or ‘Swaps’, were sold to businesses of all sizes to protect them from interest rate rises, however, when rates fell many businesses faced rising debts. It is estimated over 25,000 businesses were sold products linked to interest rates.
The committee chairman and conservative MP, Mark Garnier, has accused the current Review Scheme of being ‘fundamentally unjust’, and criticised FCA Chief Executive Martin Wheatly, of succumbing to pressure from the banks and changing the scheme to favour them.
The scandal has cost the banks over £1billion to date and it is anticipated this number will now rise.
We are going to continue this fight on behalf of the businesses who have been so badly mistreated by banks. This isn’t a problem that is going to away and we will use our expertise gained from acting for several hundred businesses in order to achieve justice for victims of bank mis-selling of these complex products.
Call 01204 322 805 for advice!