MPs urge banks to fund new tribunal system

MPs urge banks to fund new tribunal system

Recent years have seen a myriad of scandals centred around misconduct by the banks towards their SME customers.

This has been seen most prominently in recent times with the revelations around the Royal Bank of Scotland’s Global Restructuring Group which sought to capitalise on the difficult times experienced by businesses during the recession in order to clean up its own balance sheet.

The conduct of GRG has seen parallels in the likes of Lloyds which maintained its own similar department.

The conduct of these banks has led to a slew of complaints which they have had to handle. In response, the All Party Parliamentary Group on Fair Business Banking is expected to call for the establishment of a new Financial Services Tribunal according to City AM.

The Tribunal service would fill a long-standing gap in the justice system created by restrictions in the jurisdiction of the Financial Ombudsman Service (FOS). As it currently stands complaints to FOS are only eligible to be considered where the complainant is either an individual or meets certain company criteria such as having 10 or few employees. The only option available to company’s outside of this narrow framework who are dissatisfied with their bank is to pursue litigation.

As anyone that has had to pursue litigation in the past will be aware, this can often lead to astronomical costs that deter many from even attempting such an approach given the deep pockets that would go into funding any defence.

Although the establishment of such a Tribunal is likely to be years in the making, the fact that this is being debated in the first place would appear to be a positive step towards increasing access to justice for small businesses.

If you have been affected by the actions of RBS, Lloyds or any of the UK’s banks we would urge you to get in touch. Seneca Banking Consultants are experts in seeking redress for customers that have been unfairly treated by their bank and can be contacted on 01204 322 805 or through our online form