Kevin Hollinrake, vice chairman of All Parliamentary Group for Fair Business Banking believes that small businesses mistreated by banks should be able to turn to an independent financial services tribunal to oversee banking disputes, as reported by The Star.
The Conservative MP representing Thirsk and Malton believes that small businesses harmed by mainstream banks are being denied justice, and as a result, calls for a tribunal service to be put into place which is paid for by the banks.
In an attempt to provide protection for businesses who have been subjected to abuse by the banks, the ambitious plan has gathered support from high profile campaigning groups.
A spokesman for the APPG told the Yorkshire Post that consideration should be taken for the extra protections, but the tribunal service should not become an extension of the Financial Ombudsman Service (FOS) which currently handles complex financial and banking disputes.
Mr Hollinrake told The Star,
“In my own experience, the banks generally treat businesses fairly and reasonably. However, recent high-profile business banking scandals at RBS and Lloyds/HBOS have highlighted clear contraventions to the Financial Conduct Authority (FCA) regulatory requirement that banks pay due regard to the interests of its customers and treat them fairly.”
He also told The Yorkshire Post,
“We need an independent financial services tribunal, funded by the banks themselves. This would provide SMEs with an affordable route to justice when things have gone wrong, finally giving thousands of businesses access to a proper redress mechanism.
“This will also help restore fairness to the system and confidence in our banks, which in turn should see more business start-up and scale up.”
The Global Restructuring Group scandal is an example of injustice for thousands of SMEs, as the taxpayer-backed bank, Royal Bank of Scotland (RBS), used their former turnaround division to add to their balance sheet.
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