MP says banks have failed SMEs in the constituency
Today John Baron MP raised the plight of smaller companies who have been mis-sold interest rate swaps by banks, but are yet to receive redress or even permission to suspend payments into the swap agreement. The debate was introduced into the Chamber by the All-Party Parliamentary Group on Interest Rate Mis-selling. The FCA [Financial Conduct Authority] is investigating the matter. John has previously lobbied the Treasury regarding the matter, raising individual company cases.
John said:
“Local small businesses have been mis-sold these interest-rate swap agreements, which is costing them dear. Yet they have yet to receive any form of redress from the banks. This is clearly wrong.”
“The banks appear to be creating obstacles to progress. For example, their distribution between ‘sophisticated’ and ‘unsophisticated’ clients is arbitrary and time-consuming.”
“We need greater urgency from both Government and the FCA in sorting this out. The cost is stopping businesses investing for the future and, in some cases, resulting in them having to close down. I will continue to press for action.”
Ends
Word Count: 192
Date: 24th October 2013
Notes to Editors
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