HomeBusiness

MP demands that bank debt services be deleted

Kevin Hollinrake MP, a member of the Treasury Selection Committee, called for the abolition of small business banking shields. The

What the world would be like if medicine shops didn’t exist
Six Things Employers Need to Know About Bank Vacations
7 Best Bank Accounts for Self-employed Professionals in 2022

This post may contain affiliate links, which means that I may earn a commission if you click on the link & sign-up or make a purchase. You will NOT be charged extra for using the link, but it goes a long way in supporting this blog. I only recommend products or services that I have personally used or believe will add value to my readers.

Kevin Hollinrake MP, a member of the Treasury Selection Committee, called for the abolition of small business banking shields.

The times reported that the Business Banking Resolution Service (BBRS) has been overseeing only six financial grants for nearly two and a half years since it began accepting business.

The BBRS, a voluntary ombudsman set up to deal with any banking dispute between small businesses and high street banks, cost at least £ 23 million to set up.

The ombudsman was set up after thousands of companies were damaged by banking scandals. It gives small businesses an independent view on bank disputes. It is financed by seven banks but is independent of them.

According to The timesthere were only six financial grants – including modest “emergency and inconvenience” payments – regardless of whether complaints were upheld.

The BBRS did not tell the newspaper how many of these payouts were the results of sustained complaints and did not want to say how many were paid out.

Since its launch, the BBRS has been criticized for having difficult admissions criteria, for example only open to larger SMEs with a turnover of up to £ 10m per year and assets of up to £ 7.5m. The Financial Ombudsman Service (FOS) continues to handle disputes on behalf of smaller SMEs.

Mr Hollinrake, a Conservative MP, told the newspaper that “severely limited fitness rules” were to blame for the scheme’s poor performance and that these rules “conspired” to avoid the very things we had been working so hard for – justice and compensation for those who have been denied it under previous defective redress schemes. ”

He said the scheme should be scrapped in favor of raising qualification limits for businesses at the FOS.

By the end of March, the SME bank debt service had received only 776 “registrations”, of which 161 were still “alive”. At the launch, the BBRS said it was expected to investigate anything up to a thousand cases.

The Federation of Small Businesses called the figures “really disappointing” and said those involved should “work fully” to improve the service.

Further reading

What is the Business Banking Resolution Service (BBRS)?

COMMENTS

WORDPRESS: 0
    error: Content is protected !!