Steve Brine has joined up with a number of influential cross-party MPs who have come together to form a Parliamentary Group to investigate the mis-selling of interest rate hedging products by UK banks, and the impact on SMEs.
Around 50 MPs have already joined the All-Party Mis-Selling Group, reflecting the serious concerns amongst Parliamentarians about whether enough is being done to support the thousands of SMEs impacted by 'swaps'.
According to the Groups' Chairman, Guto Bebb MP, despite acceptance by the banks the mis-selling has taken place, SMEs remain in the dark about what to do if they have a claim, while many companies are being forced into administration because they are still having to pay for the swap related costs.
The Financial Services Authority redress scheme launched in June has drawn criticism from business owners on grounds that it is being managed by the banks and so fails to provide the level of independence needed to ensure small businesses get a fair hearing for their claim. Moreover, there is fear that the redress scheme is moving too slowly to rescue many small businesses from the severe financial difficulties created by swaps.
Commenting on the need for the new All Party Group, Mr. Bebb said: "That 50 MPs from across the political divide have already joined the Group is testament to the serious concerns in Parliament about the problems that swaps are still causing to SMEs despite the acceptance from banks that mis-selling took place.
"While the FSA has recognised the scandalous way SMEs have been treated by the banks, there are genuine concerns from thousands of business owners that the redress scheme fails the independence test, and quite frankly, is moving far too slowly to save some business owners from the financial ruin caused by swaps."
Steve, who is a vice-chair of the group, added: "I am delighted to have joined the group and we will be focusing our energy on securing justice for small business owners and making sure that the banks are never able to cause this kind of harm again by reckless sales practices."
More information...
Find out more, email Steve via steve.brine.mp@parliament.uk. You can also contact Toby Pellew on 07824 825365 or toby.pellew@cambertonuk.com.