Guto Bebb, Member of Parliament for Aberconwy, lead a debate in parliament on the Financial Conduct Authority’s Redress Scheme. The Redress Scheme aims to ensure small and medium sizes businesses that have been mis-sold financial products by their banks are put in the position they would find themselves in had the mis-selling not have taken place. The Bully Banks campaign group believes that around 38,000 businesses nationwide have been affected.
Citing evidence provided by a whistleblower from KPMG, Guto Bebb took the opportunity to highlight the shortcomings of the FCA’s Redress Scheme and the disappointment felt by numerous small and medium sized enterprises at the conduct of the Royal Bank of Scotland. Evidence shows RBS customers have only a 12% chance of redress, opposed to 64% of HSBC customers 65% of Barclays customers and 89% of Lloyds Banking Group customers. Following the revelations of the debate RBS’ share price tumbled. The Hansard transcript of the debate is available here.