Finance Fred Heritage · 15 January 2018
MP calls for tribunal to settle small business banking disputes
A member of parliament has called for the establishment of a SME banking disputes tribunal to oversee disagreements between small business owners and their lenders. Kevin Hollinrake, the Conservative MP for Thirsk and Malton and vice chair of the All Party Parliamentary Group for Fair Business Banking, has said that the disputes tribunal would help smaller firms take legal action against banks for miss selling products or offering poor advice. In a statement, the MP voiced his concerns that too many small businesses are unable to take legal action against banks because they can’t afford to challenge them in the courts. He urged the government to take steps to level the playing field between small companies and large banks. Explaining how the tribunal would work, Hollinrake said: The banks would fund it so it would be much cheaper for the claimant to bring an action and they would not have to pay the banks? legal costs if they lost. As a result, lending would increase as confidence between banks and business returns. His call follows industry scandals like that at RBSlast year, where a regulator’s report revealed that the high street lender had deliberately and systematically mistreated small business customers. Last month, The Financial Conduct Authority found that RBS bosses had instructed staff at the bank’s Global Restructuring Group a body set up to compensate business banking customers whod previously been miss sold products to target basket cases? and to let customers hang themselves. Hollinrake went on to say: We need a financial services tribunal that can tackle complex cases. We absolutely can’t have a situation when businesses won’t borrow because they are afraid of the risks.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.