UK’s largest business support organisation unveils service to help businesses gain redress for mis-sold financial products
The Federation of Small Businesses has unveiled a new legal service for members to gain swift redress in the light of the latest mis-selling scandal engulfing the financial sector. Many small businesses have been severely affected by the recent mis-selling of complex financial products known as interest rate swap agreements (IRSAs).
The FSB has been at the forefront of lobbying efforts with the Treasury and the Financial Services Authority (FSA) to push for swift action by the banks in order to get redress for businesses falling victim to mis-selling practices.
The FSA has now examined the extent of the mis-selling in a pilot scheme and announced that a shocking 90 per cent of these complex products were mis-sold, often to the very smallest of businesses. In light of these findings, the banks have been asked by the FSA to put this situation right by completing a review of all firms that were sold these products. The FSA has said where redress is due, businesses should be put back into the position they were prior to the mis-sale.
Though the FSA has endeavoured to make the process as quick and fair as possible, including an independent assessor for each case, the issues will be complex and legal in nature. The FSB is therefore urging businesses affected to seek appropriate expert support to aid them and to ensure they get the redress they are due.
The FSB, the largest business organisation in the UK with 200,000 members, has swiftly put together a package of support for its members. Working with one of three choice expert companies, affected firms can now navigate the FSA’s compensation scheme and bring a claim directly against the errant bank.
More information and details about these three companies can be found on the FSB website: www.fsb.org.uk/swaps. To become an FSB member go to www.fsb.org.uk/benefits
Brett McLean, FSB East Sussex Chairman (pictured) commented:
“Given our strong legal support service to business, the FSB felt it important for businesses that have been affected to be able to have a choice of professional advice, to ensure they get the redress they deserve.
It is important that speedy solutions can be found so businesses can get on with serving their customers and clients with the minimum of financial worries.”