The Enterprise Finance Guarantee Scheme was established to ensure that struggling businesses were given the support they needed during the banking crisis of 2008-09. It was designed so that banks could apply for financial support to ensure that businesses could afford daily running costs.
However, this scheme was misused by banks such as the Royal Bank of Scotland. Some businesses is Delyn were mis-sold this scheme in what appears to be a deliberate attempt to profiteer at someones loss. Perfectly good businesses that employed people in our constituency were run into the ground by financial institutions who wanted to make a quick buck.
A campaign has been ongoing for years to try and hold those with power and influence in banking to account for their actions. I wanted the Minister to provide an answer as to what discussions she will have with the Treasury to ensure that the scheme is properly regulated. She has promised to write an in-depth response which I eagerly await.
On Thursday a Backbench Business Debate was granted to debate the merits of introducing fair business banking practices. The motion I spoke in favour of read:
That this house notes the statements presented to the Treasury Select Committee on 20 July 2016 by Dr Andrew Bailey of the FCA; endorses his statement that the ad hoc creation of a compensation scheme within the FCA was not entirely successful and lacked perceived authority to treat customers with fair outcomes; believes that the recent headlines and allegations in the press against RBS will lead to pressure for a similar scheme; notes that many debates in this house over the years have focused on similar subjects with different lenders; believes that we must create not ad hoc compensation schemes, but a long term, effective and timely dispute resolution mechanism for both regulated and unregulated financial contracts; calls on the FCA, BEIS and the MoJ to work with the APPG on Fair Business Banking to create sustainable platform for commercial financial dispute resolution. Read more “RBS Enterprise Finance Guarantee Mis-selling”