Call for redress over business loan mis-selling
FAR North MP John Thurso has called on the UK Government to help ensure thousands of businesses mis-sold fixed rate business loans are compensated.
He said potentially tens of thousands of small and medium size businesses across the UK may have been inappropriately sold complex financial products such as interest rate swaps and embedded swaps or tailored business loans.
While the Financial Conduct Authority has forced banks to review its sales of interest rate swaps to businesses and to offer compensation when mis-sold, similar products are not regulated. Many of the firms involved have been forced into bankruptcy or are trapped paying high interest rates and unable to switch banks because of the cost of breaking the contract.
The Lib Dem MP has tabled a motion in Parliament calling on the Government to act to compensate these businesses.
As well as calling for a review, John Thurso is asking the Government to act to bring business loans into the regulation in the future.